n NISM Certifications
X NISM Series X
Medium

As per SEBI (AIF) Regulations, the sponsor of an AIF must have a minimum commitment of INR 5 crore or 2.5% of the total fund corpus, whichever is lower, to align their interests with investors and ensure commitment to the fund’s success.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The commitment depends on management fees

  2. B

    The sponsor has a continuing commitment till closure

  3. A minimum of INR 5 crore or 2.5% of the corpus

    Correct answer

  4. D

    A minimum commitment of 25% of the fund’s corpus

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

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