n NISM Certifications
X NISM Series X
Medium

For Category I and II AIFs, a key condition is that the fund trust can be perpetual, but each scheme within the fund must be close-ended with a fixed tenure. This structure ensures compliance with SEBI regulations.

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

    Decide open or close-ended

  2. Trust can be perpetual; schemes close-ended

    Correct answer

  3. C

    Company must be open-ended

  4. D

    Partnership must be close-ended

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

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