n NISM Certifications
X NISM Series X
Medium

An SEBI-registered AIF is permitted to invest in overseas securities with prior SEBI approval, and such investments shall not exceed 25% of the scheme’s investable funds.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Prior approval from SEBI if exceeding 25%

  2. B

    Prior approval from RBI if exceeding 25%

  3. C

    Prior approval from RBI, with limit of 25% of investable funds

  4. Prior approval from SEBI, with limit of 25% of investable funds

    Correct answer

Why this is the answer

SEBI approval is mandatory, and overseas investments are capped at 25% of the scheme's investable corpus.

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