SEBI mandates that a Private Placement Memorandum (PPM) for an AIF must follow a common template with prescribed disclosures to ensure transparency, completeness, and standardization across schemes. This helps investors understand key aspects of the fund, including investment strategy, fees, and risk factors.

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

A

SEBI has issued a circular stating that PPM abstract should be published in at least two national dailies
B

A written approval from SEBI is required for the PPM prior to launch of the scheme
SEBI has mandated a common template for the PPM and prescribed disclosure

Correct answer
D

SEBI has issued a circular stating that the PPM should be hosted on the website of the AIF

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

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NISM Series XIX A- Alternative Investmen…