NISM Series XIX-C AIF Managers Certification Exam - 30
NISM Series XIX-C AIF Managers Certification Exam - 30
Q 1. What regulatory requirement mandates active monitoring of investee companies?
a) SEC regulations
b) FCA regulations
c) SEBI regulations
d) None of the above
Q 2. Why might the management team be opposed to granting every new investor a board seat?
a) To limit investor influence
b) Maintain control over strategic decisions
c) To decrease transparency
d) To reduce the number of shareholders
Q 3. What factors are primarily considered by Private Equity investors when evaluating investment opportunities?
a) Intellectual property
b) Market size
c) Revenue growth rate
d) Technological innovation
Q 4. What is the primary risk associated with the Convertible Arbitrage Strategy?
a) Market volatility
b) Interest rate fluctuations
c) Currency risk
d) None of the above
Q 5. What steps in the private equity deal process involve gaining access to confidential information about the start-up's business?
a) Initial due diligence
b) Final due diligence
c) Term sheet negotiation
d) Signing the Shareholder Agreement
Q 6. What action should Key Persons or Key Executives of the fund take regarding situations that may affect their dedication to the Fund?
A) They should inform Investors of any such situation
B) They should resign from their positions immediately
C) They should keep such situations confidential
d) They should inform the Manager only if it directly impacts their performance
Q 7. What type of fees might a lead investor charge from syndicate investors?
a) Subscription fee
b) Management fee
c) Carried interest
d) All of the above
Q 8. How does thematic investing benefit investors?
a) By focusing solely on short-term gains
b) By minimizing portfolio risk through diversification
c) By relying on luck rather than analysis
d) None of the above
Q 9. What is the extent of the option pool's impact on investors?
a) It increases the investors' stake in the company
b) It has no impact on the investors
c) It potentially results in dilution of the investor's stake in the company
d) None of the above
Q 10. What strategy aims to benefit from the mispricing of convertible securities?
a) Global Macro Strategy
b) Equity Market Strategy
c) Convertible Arbitrage Strategy
d) None of the above
Q 11. What is the purpose of signing a non-disclosure agreement (NDA) during the initial assessment?
a) To restrict the flow of confidential information.
b) To expedite the deal closure process.
c) To avoid receiving the company's Confidential Information Memorandum (CIM).
d) To share confidential information about the company.
Q 12. What is the role of side letters in AIF investments?
a) To limit investor rights
b) To increase conflicts of interest
c) To provide additional rights to specific investors
d) To bypass regulatory requirements
Q 13. What is the primary role of the AMC (Asset Management Company) in an AIF?
a) Addressing all investor complaints
b) Maximizing profits for the fund
c) Providing information to regulators
d) All of the above
Q 14. What is the primary goal of the long-only Equity Strategy regarding returns for investors?
a) Short-term capital gains
b) High-risk speculative investments
c) Absolute returns over the medium to long-term
d) Leverage maximization
Q 15. What is the purpose of the Compliance Test Report (CTR) prescribed by SEBI for AIFs?
a) To minimize regulatory scrutiny
b) To maximize profits for the fund manager
c) To provide transparency to investors
d) To assess compliance with AIF regulations
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