n NISM Certifications
X NISM Series X
Medium

As per SEBI regulations, the sponsor or manager of an AIF must have a continuing interest of at least INR 5 crore or 2.5% of the fund’s corpus, whichever is lower, to align incentives.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Depends on management fees

  2. B

    Continuing till fund closure

  3. INR 5 crore or 2.5% of corpus

    Correct answer

  4. D

    25% of 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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