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Starting January 1, 2027, compliance officers of Alternative Investment Fund (AIF) managers must obtain mandatory certification from the National Institute of Securities Markets (NISM). SEBI’s new directive aims to strengthen governance, enhance professional standards, and ensure robust compliance practices in India’s rapidly expanding AIF industry.
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The Securities and Exchange Board of India (SEBI) has announced a significant regulatory change for the Alternative Investment Fund sector. In a circular dated December 30, 2025, SEBI mandated that compliance officers of AIF managers must clear the NISM Series III-C: Securities Intermediaries Compliance (Fund) Certification Examination before assuming or continuing their roles from 2027.
Key Highlights
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Compliance officers of AIF managers will be required to obtain NISM certification by passing the Series III-C exam
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The mandate takes effect from January 1, 2027, giving industry participants time to prepare
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The move is designed to improve governance standards and ensure adherence to SEBI’s regulatory framework
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Managers of AIFs must ensure their compliance officers meet eligibility and certification requirements as specified by SEBI
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This step reflects SEBI’s proactive approach to strengthening oversight in India’s growing alternative investment sector
Sources: SEBI Circular, Moneycontrol
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