NISM Alternative Investment Funds (Category I and II) Distributors Book by National Institute of Securities Markets

Alternative Investment Funds (Category I and II) Distributors is tailored specifically for distributors and placement agents dealing with AIFs in India. Developed by the National Institute of Securities Markets (NISM), this Edition consolidates the latest regulations, concepts, processes, and compliance essentials, enabling readers to gain a comprehensive, practical, and examination-oriented understanding of the alternative investments landscape. Backed by subject matter experts and leading industry bodies, this workbook serves as both a study guide and a reference tool for aspiring and practising professionals in the alternative investment space.

This book is intended for the following audience:

• Distributors & Placement Agents – Individuals seeking to qualify as certified distributors or placement agents for Category I & II AIFs
• Financial Advisors & Wealth Managers – Professionals advising on or distributing alternative investment products
• AIF Sponsors, Fund Managers, and Compliance Officers – Stakeholders requiring clarity on industry operations, governance, and compliance
• Students & Aspirants – Those targeting a structured career path in securities markets and alternative assets
• Legal & Regulatory Professionals – For up-to-date reference on AIF regulatory, documentation, and taxation frameworks
• Institutional Investors, Private Equity & Venture Capital Professionals – For understanding due diligence, fund structuring, and exit mechanisms

The Present Publication is the June 2025 Workbook Version, developed in collaboration with the Certification Team of NISM and Mr Pratap Giri, Mr Archit Lohia, and Mr Biharilal Deora. It is published exclusively by Taxmann, with the following noteworthy features:

• [Examination-oriented Content] Fully aligned with the NISM-Series-XIX-A syllabus and examination structure
• [Lucid, Structured Learning] Complex topics explained in simple, logical steps for easy grasp and retention
• [Updated as per Latest Regulations] Incorporates the most recent SEBI, FEMA, and taxation rules relevant to AIFs
• [Case-based Approach] Includes sample caselets, MCQs, templates, and worked examples for hands-on practice
• [Expert Input] Reviewed by industry professionals, fund managers, and leading alternative asset experts
• [Comprehensive Coverage] Spans the entire life cycle of Category I & II AIFs—from structuring and due diligence to monitoring, valuation, exit, and best practices
• [Practical Reference] Ready reckoner for distribution processes, investor services, documentation, and governance
• [Practical Orientation] Emphasises practical skills such as using Excel/OpenOffice for computations and case analysis
• [Official Resource] Endorsed by NISM and recognised by SEBI, making it the trusted study material for all candidates
• [Contribution by Experts] Developed and reviewed with inputs from leading practitioners and the Indian Private Equity & Venture Capital Association (IVCA)
• [Career Enablement] Serves as a reference for professionals and aspirants building careers in alternative investments and distribution

The workbook comprehensively covers:

• Fundamentals of Alternative Investments
  • Introduction to alternative asset classes, role in portfolio management, and the evolution of AIFs in India
• Regulatory Framework
  • Detailed overview of SEBI (AIF) Regulations 2012, FEMA provisions, and Indian legal context
• Industry Concepts
  • In-depth explanations of the private capital ecosystem, capital commitment, due diligence, preferred returns, co-investments, and ESG
• AIF Structuring
  • Principles of fund pooling, structuring templates, and anatomy of AIF constitutions
• Risk & Return Analysis
  • Fund and investor perspectives on risk, primary return metrics, and the 'J Curve'
• Investment Process & Governance
  • From deal sourcing and due diligence to investor protection rights and compliance
• Fund Due Diligence
  • Fund selection, benchmarking, evaluating fund managers, and distributor sales strategy
• Legal Documentation
  • All essential agreements, term sheets, investor charters, and documentation templates
• Monitoring, Reporting & Exit
  • Performance monitoring, reporting standards, secondary exits, and winding-up procedures
• Valuation
  • Methods for fixed income and equity, business valuation, regulatory approaches, and the role of valuers
• Taxation
  • Framework for AIF and investor taxation, domestic and international aspects, and anti-avoidance rules
• Good Practices
  • Distribution agreements, preparation of pitch, confidentiality, conflict of interest management, and professional conduct

The workbook is organised into 13 chapters, each aligned to the NISM exam weightage and designed to build conceptual understanding and operational expertise progressively.

• Introductory Chapters – Overview of Alternative Investments; Alternative Investment Funds in India
• Core Chapters – Industry Concepts; Regulatory Framework; Structuring; Risk & Return; Investment Process & Governance; Fund Due Diligence; Legal Documentation & Negotiation; Fund Monitoring, Reporting & Exit; Valuation; Taxation
• Practical & Operational Chapters – Sales strategy formulation, fund benchmarking, compliance reporting, client confidentiality, and best practice guidelines
• Appendices & Resources – Templates, case studies, practical checklists, and further reading materials
• Each chapter contains learning objectives, practical scenarios, regulatory extracts, and assessment questions to reinforce knowledge and practical skills