SEBI Mandates NISM Certification for AIF Managers’ Key Personnel
To strengthen regulatory oversight and protect investors, SEBI has made it mandatory for key personnel of AIF managers to obtain NISM certification. This significant reform ensures that those managing Alternative Investment Funds (AIFs) meet a minimum standard of professional knowledge.
Let’s break down what this new rule means, who it applies to, and how it impacts fund managers and investors.
What is the SEBI Mandate?
In its latest circular dated June 25, 2025, SEBI announced that key investment team members of AIF managers must obtain the NISM-Series-XXII-A: AIF Managers Certification.
Applicability:
- Who: Key personnel of the AIF manager involved in fund management or decision-making.
- By When: Within six months from the date of the circular i.e., by December 25, 2025.
- Certification Body: National Institute of Securities Markets (NISM), under SEBI’s purview.
📜 Official Source: SEBI Circular
Why Has SEBI Introduced This Requirement?
SEBI’s push for NISM certification is aimed at:
- Enhancing investor protection through qualified fund managers
- Standardising skillsets across the AIF industry
- Improving transparency and governance in alternative investments
- Reducing risk of mismanagement in high-value, unregulated investment schemes
Keyphrase Highlight: NISM Certification for AIF Managers
Who Must Get Certified?
| Category | Requirement |
|---|---|
| Fund Managers | Must obtain NISM-Series-XXII-A certificate |
| Investment Decision-Makers | Mandatory if involved in asset allocation |
| Compliance Officers | Not mandatory, unless part of investment decisions |
What is the NISM AIF Certification Exam?
The NISM-Series-XXII-A: AIF Managers Certification is a new module developed by NISM in collaboration with SEBI.
It covers:
- AIF Regulations and legal framework
- Fund structuring and taxation
- Investment strategies and risk management
- Compliance and governance norms
Exam Duration: 2 hours
Passing Marks: 60%
Validity: 3 years
📌 Visit NISM official site to register for the exam.
Expert View: A Wake-Up Call for AIF Ecosystem
“This move brings Indian AIF regulations closer to global standards. Certification ensures that investment decisions are not just lucrative but also legally sound,” says Ritu Jain, SEBI-registered advisor.
Many experts believe this will boost investor confidence, especially among HNIs and family offices.
Impact on AIF Industry
Here’s what fund houses must now do:
✅ Identify all key personnel who require certification
✅ Register them for the NISM exam within six months
✅ Document compliance with SEBI’s circular in internal governance records
✅ Disclose certification status in future compliance reports
Penalty for Non-Compliance
SEBI hasn’t specified fines yet, but failure to comply could lead to:
- Rejection of new AIF scheme filings
- Restrictions on fundraising
- Disqualification of fund managers
Efiletax Tip: Act Proactively
Don’t wait until December.
- Enroll your AIF team early
- Use this period to train and upskill
- Document and update compliance files regularly
Need help with SEBI registration, AIF setup, or NISM filing assistance?
👉 Get started with Efiletax today.
Summary
SEBI mandates NISM certification for key personnel of AIF managers to improve investor protection and governance. All AIFs must comply by December 25, 2025.
FAQs
1. Is the NISM certification applicable to all employees of the AIF manager?
No. It applies only to key personnel involved in investment decision-making.
2. Can the exam be taken online?
Yes. NISM offers online exam slots across major Indian cities.
3. What happens if a key person fails the exam?
They cannot continue in their role until they pass the certification.