n NISM Certifications
X NISM Series X
Medium

To avoid conflicts of interest in a Category II AIF, which area requires attention?

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. A

    Statutory compliance by investee companies

  2. Appointment of service providers to the AIF/management company

    Correct answer

  3. C

    The role of the investment manager in tax compliance

  4. D

    Leveraging by the fund

Why this is the answer

Ensuring external service providers do not have conflicting interests is critical to prevent conflicts and maintain governance standards.

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.