Sebi Mandates Certification for Key Personnel in Investment

The Securities and Exchange Board of India (Sebi) has introduced amendments requiring key personnel within Alternative Investment Fund (AIF) managers to obtain certification to elevate competency and professionalism in the sector.

Sebi Certification Requirement:

As per the notification dated May 10, Sebi stipulates that at least one key personnel within the investment team of an AIF manager must obtain certification from the National Institute of Securities Market (NISM) by passing the NISM Series-XIX-C examination.

The amended rules, effective immediately from the date of notification, aim to ensure a higher level of proficiency in managing AIFs. By mandating certification for key personnel, Sebi seeks to elevate standards within the industry and foster greater investor confidence.

Streamlining Compliance and Facilitating Business:

In addition to the certification requirement, it has recently introduced measures to streamline compliance processes for AIFs. 

Changes allowing direct submission of certain alterations in the private placement memorandum to the regulator aim to reduce reliance on merchant bankers and rationalize compliance costs for AIFs. 

This move underscores Sebi’s commitment to fostering a conducive environment for alternative investment funds and promoting ease of business in the market.

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