New Delhi, May 14 -- The Securities and Exchange Board of India (SEBI) has extended the deadline for alternative investment fund (AIF) managers to comply with a mandatory certification requirement. According to a circular issued on Tuesday, the new deadline is July 31, 2025, extending the earlier cutoff of May 9, 2025.
"Based on representation received from the AIF industry, and with the objective of providing ease of compliance to the AIF industry, it has been decided to extend the said timeline from May 9, 2025, to July 31, 2025, to obtain the requisite NISM (National Institute of Securities Markets) certification," SEBI said in the circular.
The certification requirement, a part of the amendments to the SEBI (Alternative Investment Funds) Regulations, 2012, mandates that at least one key investment team member of an AIF manager must clear the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination.
Effective from May 10, 2024, the rule applies to all AIF schemes and those with pending applications as of that date.
In the circular, SEBI has also directed AIF trustees or sponsors to ensure that the annual Compliance Test Report (CTR) prepared by managers reflects adherence to the certification rule. The NISM certification, valid for three years, must be renewed to maintain compliance.
The extension follows SEBI's earlier notification in May 2024, which introduced the certification to enhance professionalism in the AIF sector. Industry observers note that the additional time may help managers meet the requirement without disrupting operations, though some have raised concerns about the added compliance burden.
Published by HT Digital Content Services with permission from VC Circle.