Taxmann Alternative Investment Funds (Categories III) Distributors by NISM – Edition March 2022

Alternative Investment Funds (Category III) Distributors seeks to create a common minimum knowledge benchmark for persons working in the Alternative Investment Fund domain in India as:

• Distributors, or
• Placement Agents

It also aims to enhance the quality of sales and distribution and enable better quality investor services.

The Present Publication is the October 2021 workbook version, published exclusively by Taxmann for NISM Certification Examination XIX-B [Alternative Investment Funds (Category III) Distributors], with the following noteworthy features:

• [Know the Basics] of alternative asset class and the Alternative Investment Funds (Category III) markets in India
• [Understand] the following in detail pertaining to Category III AIF:
  • The ecosystem of Category III AIFs and the role of external service providers
  • Role of Category III AIFs as a risk management tool
  • Fund structure, fees structure, performance measurement techniques and their interpretation, importance, and role of performance benchmarking
  • Various investment strategies involved and investment due diligence processes followed by investors
  • Concept of NAV, valuation techniques used, and role of third-part registered valuers
  • Various taxation aspects for the fund and its investors, in both domestic and IFSC jurisdictions
  • Role and conduct of distributors in servicing the investors
• [Know the Regulatory Environment] in which AIFs (Category III) operate in India

The detailed contents of the book are as follows:

• Overview of Alternative Investments
• Growth of Alternative Investment Funds in India and Suitability of Category III AIFs
• Introduction to Category III AIF Ecosystem
• Category III AIF: Fund Structures and Service Providers
• Regulatory Framework
• Fees Structure, Fund Performance, and Benchmarking
• Category III AIF Investment Strategies and Due Diligence Process
• Valuation
• Taxation
• Good Practices

NISM is a leading provider of high-end professional education, certifications, training and research in financial markets. NISM Certification programs aim to enhance the quality and standards of professionals employees in various segments of financial services sector. NISM’s School of Certification of Intermediaries (SCI) develops and conducts certification examinations and Continuous Professional Education (CPE) programs that aim to ensure that professional meet the defined minimum common knowledge benchmark for various critical market functions like:

• Mutual Funds
• Equities
• Derivatives
• Securities Operations
• Compliance
• Research Analysis
• Investment Advice

These Certifications and CPE Programs are being developed and administered by NISM as mandated under ‘Securities and Exchange Board of India (Certification of Associated Persons in the Securities Market) Regulations, 2007’. The Certifications creates quality market professionals and catalyzes greater investor participating in the markets. Certifications also provides structured career paths to students and job aspirants in the securities market.