In December 2025, the Securities and Exchange Board of India (SEBI) mandated that compliance officers of Alternative Investment Fund (AIF) managers must obtain certification from the National Institute of Securities Markets (NISM) by passing the NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination, effective from January 1, 2027.
- What? NISM certification made compulsory for AIF Compliance Officers
- By Whom? Securities and Exchange Board of India (SEBI).
- Exam Required: NISM Series-III-C: Securities Intermediaries Compliance (Fund)
- Issuing Body: National Institute of Securities Markets (NISM)
- Effective Date: January 1, 2027
- Key Purpose: Strengthen governance and standardise compliance qualifications in the AIF sector
About NISM Certification Mandate for AIFs:
Eligibility: From January 1, 2027, only individuals who have cleared the NISM Series-III-C certification examination will be eligible to be appointed as, or continue to serve as, compliance officers of AIF managers.
Compliance Reporting: SEBI has directed trustees, sponsors, and managers of AIFs to explicitly disclose adherence to the certification mandate in the annual Compliance Test Report.
Implementation: AIF managers and existing compliance officers are advised to proactively register for and complete the NISM Series-III-C certification examination well ahead of the January 1, 2027 deadline.
- In parallel, firms should update their internal compliance frameworks, policies, and reporting systems to incorporate the new certification requirement in compliance records and annual reports.
Growth: AIF assets in India have increased from Rs 28,000 crore to over Rs 15 lakh crore in ten years, at a Compound Annual Growth Rate (CAGR) of 49%.
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