SEBI Mandates NISM Certification for AIF Key Personnel by July 31, 2025

Notification No. F. No. SEBI/LAD-NRO/GN/2025/249., Dated: 25-06-2025

The Securities and Exchange Board of India (SEBI) has amended the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007, introducing mandatory certification requirements for key investment team members of Alternative Investment Funds (AIFs).

1. Applicability to Category I and II AIFs

Under the amended regulations, the mandate applies to:

• Category I AIFs
• Category II AIFs
• Combined Category I and II AIFs

As per the amendment, at least one key personnel in the Manager’s key investment team of such AIFs must hold valid certification from the National Institute of Securities Markets (NISM).

2. Approved NISM Certifications

To comply with this requirement, the designated key personnel must pass either of the following NISM certification examinations:

• Series-XIX-C – Alternative Investment Fund (AIF) Distributors Certification Examination, or
• Series-XIX-D – Alternative Investment Fund Managers Certification Examination (newly introduced).

This ensures that investment professionals managing AIFs possess adequate knowledge and understanding of regulatory, operational, and fiduciary aspects of alternative investments.

3. Compliance Timeline for Existing AIFs

For AIFs already registered and operational as of the date of this notification, SEBI has provided a compliance window until July 31, 2025.

All such existing AIFs must ensure that the designated personnel obtain the requisite NISM certification on or before this date to remain compliant with the updated regulations.

4. Objective of the Amendment

The amendment aims to:

• Enhance professionalism and accountability within the AIF ecosystem.
• Ensure that key decision-makers are formally equipped with domain-specific knowledge.
• Promote investor confidence through regulatory oversight and competence validation.

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