The Private Placement Memorandum (PPM) is the main disclosure document for potential investors, outlining fund terms, risks, and investment strategy, issued privately and not available publicly.

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

A

The PPM is considered a public offer document
The PPM is the main disclosure document for investors

Correct answer
C

The PPM is available on SEBI’s website

Why this is the answer

The PPM provides comprehensive fund disclosures and is issued only to prospective investors, not publicly.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.

NISM Series XIX A- Alternative Investmen…