Examination Overview - NISM Series XIX-B: Alternative Investment Funds (Category III) Distributors Certification Mock Test
The examination is designed to establish a common minimum knowledge benchmark for professionals engaged in the distribution of Category III Alternative Investment Funds (AIFs), including hedge funds and other leverage-based pooled investment vehicles regulated by the Securities and Exchange Board of India (SEBI).
This certification aims to enhance the quality, transparency, and suitability standards in the distribution of Category III AIF products by ensuring that distributors possess a clear understanding of fund structures, investment strategies, risk-return dynamics, leverage implications, taxation aspects, and regulatory guidelines governing AIFs in India. It ensures that professionals involved in marketing and distributing Category III AIF schemes are well-equipped to assess investor suitability, communicate product risks effectively, and adhere to SEBI’s compliance and disclosure requirements.
By strengthening conceptual clarity around alternative asset classes, fund documentation, valuation methodologies, reporting standards, and investor grievance mechanisms, the examination promotes responsible distribution practices and supports higher standards of governance and investor protection within the alternative investment ecosystem.
Examination Objectives
On successful completion of the examination, the candidate should be able to:
Understand the fundamentals of alternative asset classes and the structure, features, and regulatory positioning of Category III Alternative Investment Funds in India.
Gain detailed knowledge of the Category III AIF ecosystem, including the roles and responsibilities of investment managers, trustees, custodians, administrators, auditors, prime brokers, and other external service providers.
Gain knowledge of taxation aspects applicable to Category III AIFs and their investors, including treatment under domestic tax laws and frameworks applicable within International Financial Services Centre (IFSC) jurisdictions.
Comprehend the function of Category III AIFs as sophisticated investment and risk management vehicles, including the use of leverage, derivatives, and long-short strategies.
Understand the concept of Net Asset Value (NAV), valuation principles applicable to listed and unlisted securities, and the role of independent third-party registered valuers in ensuring transparency and fairness.
Assessment Structure
| Component |
Details |
| Mode of Exam |
Online (Computer-Based Test) |
| Multiple Choice Questions |
80 Questions × 1 Mark = 80 Marks |
| Case-Based Questions |
5 Cases × 4 Questions × 1 Mark = 20 Marks |
| Language Options |
English |
| Number of Questions |
100 |
| Total Marks |
100 |
| Marks per Question |
1 mark |
| Passing Criteria |
60% |
| Negative Marking |
10% of the marks assigned to the question |
| Exam Duration |
2 Hours (120 Minutes) |
| Exam Fee |
Rs. 1,770 (inclusive of GST) + payment gateway charges extra |
| Result Declaration |
Immediately after exam completion |
| Certificate Validity |
3 Years from the date of passing |
| PAN Requirement |
PAN must be updated in your profile to apply |
| Exam Delivery Modes |
At 150+ NISM test centers across India |
Syllabus Outline – Alternative Investment Funds (Category III) Distributors Certification Examination
| Chapter No. |
Chapter Name |
Weightage (%) |
| Chapter 1 |
Overview of Alternative Investments |
4 |
| Chapter 2 |
Growth of Alternative Investment Funds in India and Suitability of Category III AIFs |
4 |
| Chapter 3 |
Introduction to Category III AIF Ecosystem |
12 |
| Chapter 4 |
Category III AIF: Fund Structures and Service Providers |
12 |
| Chapter 5 |
Regulatory Framework |
15 |
| Chapter 6 |
Fees Structure, Fund Performance and Benchmarking |
15 |
| Chapter 7 |
Category III AIF Investment Strategies and Due Diligence Process |
8 |
| Chapter 8 |
Valuation |
12 |
| Chapter 9 |
Taxation |
10 |
| Chapter 10 |
Good Practices |
8 |
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Frequently Asked Questions - NISM Series XIX-B: Alternative Investment Funds (Category III) Distributors Certification
The NISM Series XIX-B exam is a mandatory certification for professionals distributing Category III Alternative Investment Funds (AIFs), including hedge funds and leverage-based pooled vehicles. To ensure you understand the complex fund structures and regulatory guidelines, we highly recommend preparing with a comprehensive
NISM XIX-B Mock Test
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Any professional involved in marketing and distributing Category III AIF schemes must take this exam. It ensures you can effectively assess investor suitability and communicate product risks. You can evaluate your current knowledge by taking a NISM 19B Demo Test at nismexams.in.
The exam consists of 100 questions carrying 100 marks in total. It features 80 standard multiple-choice questions (MCQs) and 5 case studies comprising 20 case-based questions. To get comfortable with this specific format, you should attempt a NISM 19B Practice Test on nismexams.in.
Yes, there is a negative marking of 10% for every incorrect answer. Because guessing can severely impact your score, it is crucial to build your accuracy by practising regularly with a NISM XIXB Practice Test from nismexams.in.
Candidates must score at least 60% to pass the examination. To consistently achieve and exceed this passing criteria, you can track your progress using a rigorous
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Absolutely. The exam includes 20 marks dedicated purely to case-based questions (5 cases with 4 questions each). Our preparation package at nismexams.in includes 20 specialised case study-based questions within the NISM XIX-B Mock Test to help you master real-world scenarios.
The official exam fee is Rs. 1,770 (inclusive of GST), plus payment gateway charges. Since the fee is substantial, it is wise to secure your investment by preparing thoroughly with an affordable NISM XIXB Demo Test package from nismexams.in.
Chapter 5 (Regulatory Framework) and Chapter 6 (Fees Structure, Fund Performance and Benchmarking) carry the highest weightage at 15% each. You can master these high-priority chapters by taking a targeted NISM 19B Practice Test on nismexams.in.
Our premium study package includes a vast question bank of 600 exam-focused questions alongside 20 specific case study-based questions. Accessing this NISM XIXB Mock Test on nismexams.in provides ample material to build absolute confidence.
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Once you pass the examination, the certificate remains valid for 3 years from the date of passing. Start your journey towards certification today by enrolling in a NISM XIXB Practice Test at nismexams.in.
Candidates are given exactly 2 hours (120 minutes) to complete the 100 questions. Time management is critical, which is why practicing with a timed NISM XIXB Demo Test on nismexams.in is highly recommended.
Yes, all our study resources are strictly aligned with the latest NISM syllabus and SEBI guidelines. By choosing a NISM 19B Practice Test from nismexams.in, you ensure you are learning the most relevant and up-to-date content.
Yes, Chapter 9 covers the taxation aspects of Category III AIFs and carries a 10% weightage. To understand complex domestic and IFSC tax treatments, we advise practising with a NISM 19B Mock Test available on nismexams.in.
Our Rs. 599 package provides you with 15 test attempts per set. This allows you to practise extensively and refine your strategy using the NISM XIXB Mock Test engine exclusively on nismexams.in.
Purchasing the package grants you 15 days of continuous access to the study portal. This provides ample time to utilise the NISM 19B Demo Test and other resources on nismexams.in to finalise your exam preparation.
Yes, it is a mandatory requirement to have your PAN updated in your NISM profile before applying. While your documentation is being verified, you can begin your preparation with a NISM XIXB Practice Test at nismexams.in.
Yes, Chapter 8 is dedicated to Valuation (12% weightage) and covers NAV, unlisted securities, and the role of independent valuers. You can conquer these technical concepts by taking a specialised NISM 19B Mock Test on nismexams.in.
Because it is an online computer-based test, the result is declared immediately after you submit the exam. Ensure you see a "Pass" on your screen by building your competence through a NISM XIXB Demo Test on nismexams.in.
Random PDFs are often outdated and fail to simulate the actual computer-based testing environment. To clear the exam on your first attempt, you need the structured, exam-level application provided by a premium NISM XIXB Mock Test at nismexams.in.