n NISM Certifications
X NISM Series X
Medium

The Due Diligence Review (DDR) for an AIF is conducted after the term sheet is signed but before the execution of definitive agreements, to assess the investee company thoroughly.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. After Term Sheet, before agreements

    Correct answer

  2. B

    After Term Sheet, before audit report

  3. C

    After audit, before term sheet

  4. D

    After negotiations, before term sheet

Why this is the answer

DDR occurs once preliminary terms are agreed upon but prior to final binding contracts.

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