n NISM Certifications
X NISM Series X
Medium

A sponsor of an AIF must be a 'fit and proper' person as determined by SEBI, meaning they must satisfy regulatory criteria related to integrity, experience, and financial soundness, ensuring responsible fund setup and management.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 'Fit and proper’ person as determined by SEBI

    Correct answer

  2. B

    Insolvent individual yet to file for bankruptcy

  3. C

    Individual of unsound mind undergoing treatment

  4. D

    Convicted individual awaiting sentencing

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

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