NISM Series XIX-D: Alternative Investment Funds Flashcards

Fill-in-the-blank practice flashcards designed for students reviewing the NISM Series XIX-D certification study notes.

Saving is defined as the passive state of accumulation representing the simple difference between earnings and __________.

expenditure

Under Section 2(h) of the Securities Contracts (Regulation) Act, 1956, the statutory definition of securities explicitly excludes any __________ policy.

Unit Linked Insurance Policy (ULIP)

Under the SEBI ICDR Regulations, 2018, a Retail Individual Investor (RII) is defined as an individual who applies or bids for specified securities for a total value of not more than __________.

$$\text{INR } 2\text{ lakh}$$

Using the Fisher Equation $NRR = [(1 + \text{Real Rate}) \times (1 + \text{Expected Inflation})] - 1$, an investor with a $3\%$ Real Rate and $5\%$ Expected Inflation requires a Nominal Risk-Free Rate of __________.

$$8.15\%$$

According to the Department for Promotion of Industry and Internal Trade (DPIIT), a start-up is defined as an entity incorporated in India not exceeding $10$ years of age with an annual turnover not exceeding __________ in any financial year.

$$\text{INR } 100\text{ crore}$$

Introduced by SEBI via amendment regulations in 2024, Specialized Investment Funds (SIFs) mandate a minimum required investment threshold of __________ across all strategies.

$$\text{INR } 10\text{ lakhs}$$

For Category I and Category II AIFs, the Sponsor or Manager must maintain a continuing interest of at least $2.5\%$ of the corpus or __________, whichever is lower.

$$\text{INR } 5\text{ crore}$$

For Category III AIFs, the mandatory Sponsor continuing interest is at least $5\%$ of the scheme corpus or __________, whichever is lower.

$$\text{INR } 10\text{ crore}$$

An AIF scheme is classified as a Large Value Fund (LVF) if it raises funds exclusively from Accredited Investors where each investor commits a minimum of __________.

$$\text{INR } 70\text{ crore}$$

Under Section 42 of the Companies Act, 2013, private companies are strictly prohibited from making private placements to more than __________ investors.

$$200$$

To secure tax pass-through status under Indian income tax laws, an AIF private trust must be structured as an irrevocable __________ trust.

determinate

The __________ clause in an investor side letter legally entitles the investor to automatically receive the benefit of any superior terms subsequently granted to other investors.

Most Favoured Nation (MFN)

Category I and Category II AIFs are prohibited from investing more than __________ of their investable funds in a single investee company.

$$25\%$$

Large Value Funds (LVFs) enjoy a relaxed concentration limit, allowing them to invest up to __________ of their investable funds in a single investee company.

$$50\%$$

The realization multiple measuring cash returned to investors relative to contributed capital is the __________ multiple.

Distributions to Paid-In Capital (DPI)

The Total Value to Paid-In Capital (TVPI) multiple is computed as the sum of DPI and __________.

$$\text{RVPI}$$

Under the SEBI Stewardship Code, Principle 5 mandates that institutional investors must develop a clear policy on __________ and avoid blindly supporting corporate management.

voting

Category I and Category II AIFs are required to distribute their annual reports to investors within __________ days from the close of the financial year.

$$180$$

Under Regulation 27 of the SEBI AIF Regulations, all specified fund records must be preserved for a minimum period of __________ years after the date of formal winding up.

$$5$$

The quarterly activity report of an AIF must be submitted online through the SEBI Intermediary Portal within __________ calendar days from the end of each quarter.

$$10$$

Extending the tenure of a close-ended Category I or II AIF scheme beyond its original term requires the prior formal approval of at least __________ of the unitholders by value.

$$2/3\text{rds}$$

Prior to transferring unliquidated assets to a Liquidation Scheme or making an in-specie distribution, the Investment Manager must arrange a binding bid for a minimum of __________ of the total value of unliquidated investments.

$$25\%$$

If an AIF manager fails to successfully arrange the mandatory $25\%$ bid for unliquidated assets, those assets are transferred or distributed at a nominal value of __________.

$$\text{INR } 1$$

Under Section 194LBB of the Income Tax Act, Category I and II AIFs must deduct withholding tax (TDS) at a flat rate of __________ on pass-through income paid or credited to resident unitholders.

$$10\%$$

Any business income earned by a Category I or II AIF structured as a private trust is taxed at the fund level at the __________.

Maximum Marginal Rate (MMR)

W.e.f. transfers, redemptions, or maturities on or after July 23, 2024, any capital gains arising from unlisted debentures are deemed to be __________ capital gains.

short-term

General Anti-Avoidance Rules (GAAR) apply in India if the aggregate tax benefit to all parties involved in an arrangement exceeds __________ in a financial year.

$$\text{INR } 3\text{ crore}$$

An AIF must upload the verified KYC data of onboarded investors onto the CKYCR portal within __________ days of starting a business relationship.

$$10$$

An AIF that allocates or issues units to non-resident investors must file Form InVi with the Reserve Bank of India (RBI) within __________ days of unit allotment.

$$30$$

Under SEBI SCORES grievance redressal guidelines, an Investment Manager must resolve investor complaints and upload an Action Taken Report (ATR) within __________ calendar days.

$$21$$

In the early phase of PE/VC deal sourcing, investment bankers send out a brief 1-to-3 page anonymous summary of the business known as a __________.

teaser

For Shareholders' Agreement (SHA) terms to be legally enforceable against a company under Indian corporate law, the company must amend its __________.

Articles of Association (AoA)

In start-up valuation mechanics, Post-Money Valuation is calculated as Pre-Money Valuation plus __________.

$$\text{New Investment Amount}$$