n NISM Certifications
X NISM Series X
Medium

'Side letters' are required in investor arrangements to record specific terms applicable only to certain investors, which are not part of the standard agreement, such as preferential fees or participation rights.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    As per trust deed

  2. B

    To differentiate investors and managers

  3. C

    To protect sponsors from liabilities

  4. To record specific terms that may not apply to all investors

    Correct answer

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…