n NISM Certifications
X NISM Series X
Medium

What is the approved method for raising funds via an Alternative Investment Fund (AIF)?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    New Fund Offer

  2. Private Placement

    Correct answer

  3. C

    Initial Public Offer

  4. D

    Any of the above

Why this is the answer

SEBI regulations specify that AIFs raise funds primarily through private placements, avoiding public solicitation for raising capital from the general public.

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