NISM Certification Deadline for AIFs Extended to 31 Jul 2025
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Circular No. SEBI/HO/AFD/AFD-PoD-1/P/CIR/2025/066, Dated: 13.05.2025
1. Introduction
On 14 May 2025, the Securities and Exchange Board of India (SEBI) issued a circular that extends the deadline to 31 July 2025 for Alternative Investment Fund (AIF) managers to ensure that at least one member of their key investment team clears the NISM Series-XIX-C – AIF Managers Certification Examination. The requirement—introduced on 10 May 2024 under Regulation 4(g)(i) of the AIF Regulations—was originally slated to take effect by 9 May 2025 but has now been deferred by almost three months in response to industry requests and to facilitate smoother compliance.
2. Background – Certification Mandate Under AIF Regulations
- Regulatory trigger (May 10 2024) – SEBI amended Regulation 4(g)(i) to specify that, going forward, one key investment professional in every AIF manager must hold the NISM Series-XIX-C certification.
- Applicability
-
- Existing AIF schemes registered on or before 13 May 2024.
- Schemes whose launch applications were pending as of 10 May 2024.
-
Objective – Standardise baseline competence across AIF management teams, enhance investor protection and align India’s regime with global best practices.
3. Details of the Extension
| Item | Previous Deadline | New Deadline | Effective Date of Circular |
|---|---|---|---|
| NISM Series-XIX-C certification for at least one key investment team member | 9 May 2025 | 31 July 2025 | Immediately (14 May 2025 circular issuance) |
4. Rationale for the Extension
- Industry Feedback – Multiple representations—particularly from the Indian Venture & Alternate Capital Association (IVCA)—highlighted scheduling challenges and limited exam-slot availability.
- Operational Ease – Three additional months allow AIF managers to book exam slots, complete study requirements and avoid last-minute non-compliance.
- Regulatory Balance – SEBI emphasises that the extension does not dilute the competence standard; it merely offers a pragmatic timeline adjustment.
5. Implications
| Stakeholder | Impact |
|---|---|
| AIF Managers | Reduced immediate compliance pressure; opportunity to train broader teams. |
| Investors/LPs | Greater assurance of professional competence once rule is fully implemented. |
| NISM | Expected surge in exam registrations; logistical scaling required. |
| Compliance Officers & Advisors | Need to recalibrate compliance dashboards and client alerts. |
6. Penalties for Non-Compliance Post 31 July 2025
Failure to obtain the certification by the revised deadline may invite –
- Monetary penalty under Chapter VIA of the SEBI Act.
- Restriction on raising new commitments or launching schemes until compliance is demonstrated.
- Adverse fit-and-proper assessment in future regulatory filings.
7. Next Steps & Recommended Actions
- Immediate – Circulate the SEBI circular internally and confirm nomination of the key personnel.
- Within 30 Days – Register for the NISM exam, block preparation time and arrange mock tests.
- Quarterly Monitoring – Compliance teams should track progress and update senior management.
- Final Week of July – Submit certificate copy to SEBI (or maintain ready for inspection) and record compliance in statutory registers.
8. Conclusion
SEBI’s timeline extension to 31 July 2025 offers welcome breathing room, but the certification mandate remains non-negotiable. AIF managers should leverage the additional time to prepare, certify and document compliance to avoid last-minute hurdles and potential enforcement action.
Click Here To Read The Full Circular
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