NISM Series XIX-C AIF Managers Certification Exam - 34
NISM Series XIX-C AIF Managers Certification Exam - 34
Q 1. Which index is designed to reflect the behavior and performance of large and mid-market capitalization companies?
a) NIFTY 50 Index
b) NIFTY Next 50 Index
c) NIFTY 100 Index
d) NIFTY 500 Index
Q 2. What is the purpose of an Investment Committee in the context of AIFs?
a) To maximize profits for the fund manager
b) To approve all investment decisions of the AIF
c) To minimize transparency in decision-making
d) To avoid compliance with SEBI regulations
Q 3. What role do long and short positions play in the Market-Neutral Strategy?
a) Maximizing leverage
b) Minimizing market risk
c) Achieving short-term gains
d) Speculative trading
Q 4. How might a Stakeholder Management Committee contribute to effective decision-making in Private Equity?
A) By avoiding engagement with service providers
B) By minimizing transparency in decision-making processes
C) By setting clear and measurable objectives for the fund
d) By disregarding the views of different stakeholder groups
Q 5. What was one of the key factors considered during the initial assessment of potential investments?
a) Networking capabilities of the management team.
b) Past financial performance.
c) Availability for industry conferences.
d) Investment bankers' personal information.
Q 6. What might fund investors do if they perceive a high litigation risk associated with an investee company?
a) Increase their investment
b) Exercise their board seats aggressively
c) Reserve the right to appoint a director but refrain from doing so
d) Engage in hostile takeovers
Q 7. What are affirmative rights in the context of startup investing?
a) Rights that allow investors to oppose corporate actions
b) Rights that require investors' approval regardless of their shareholding
c) Rights that grant investors the power to veto decisions
d) None of the above
Q 8. What is one of the challenges faced by AIF managers in sourcing potential deals?
a) Lack of available financial information about listed companies.
b) Difficulty in reaching out to institutional investors.
c) Limited access to investment bankers.
d) Excessive competition from other AIF managers.
Q 9. What plays an important role in the successful implementation of the Merger Arbitrage Strategy?
a) Global economic conditions
b) Company fundamentals
c) Regulatory changes
d) None of the above
Q 10. What action should be taken regarding misleading or inaccurate statements about qualifications or capabilities?
A) They should be disregarded if they are beneficial to the AIF
B) They should be rectified immediately
C) They should be ignored to avoid conflict
d) They should be encouraged to attract investors
Q 11. What factors determine the extent of the option pool?
a) The current revenue of the company
b) The number of employees in the company
c) The performance of the company, collective strength and skills of the team, revenue targets, growth expectations, and lack of initial funding to pay employee salaries
d) None of the above
Q 12. Who are considered key service providers in the context of fund governance?
a) Retail investors
b) Individual shareholders
c) Custodians, prime brokers, and administrators
d) Regulatory authorities
Q 13. What is the purpose of the Designated Body for AIFs in the grievance redressal process?
A) To initiate the first review automatically
B) To forward complaints to SEBI for resolution
C) To monitor the ATRs submitted by the AIF
d) To resolve disputes between investors and AIFs
Q 14. What might a family office consider when evaluating an investment opportunity?
A) Short-term profitability only
B) Strategic alignment with the fund's objectives
C) Predictability of market conditions
d) Geographical location of the investee company
Q 15. What is the purpose of the Non-disclosure agreement (NDA) in the investment process?
a) To disclose confidential information about the investor.
b) To limit the potential investment options.
c) To provide legal protection and share confidential information about the company.
d) To expedite the deal closure process.
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