n NISM Certifications
X NISM Series X
Medium

A malpractice for an Alternative Investment Fund (AIF) distributor is sharing commissions with investors, which is prohibited under model good practices, as it can lead to conflicts of interest and improper incentivization. Distributors should not rebate commissions or attract investors through gifts or gratification.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Marketing schemes with elaborate placement memoranda

  2. B

    Marketing schemes with high capital commitments

  3. Sharing commission with investors

    Correct answer

  4. D

    Marketing schemes with India focus to offshore investors

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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