n NISM Certifications
X NISM Series X
Medium

The tenure of a close-ended AIF scheme can be extended only if at least two-thirds of the unit holders by value approve the extension, which may be up to an additional two years beyond the original tenure, subject to fund-specific conditions and 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

    It can be extended after receiving approval from the Sponsor

  2. B

    It can be extended after being ratified by the trustee in consultation with investors

  3. It can be extended by receiving an approval of at least two-thirds of unit holders by value of their investment in the AIF scheme

    Correct answer

  4. D

    It can be extended after receiving approval from the registrar of trusts

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

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