NISM Series XIX-C AIF Managers Certification Exam - 35

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Q 1. What does the value per share of the company represent in the DCF method?

a) The total market value of the company

b) The net asset value of the company

c) The value of outstanding debt in the company

d) The value of a single equity share in the company
 
Q 2. What percentage of the total capital structure represents debt if the Debt-Equity Ratio (DER) is 1.5:1?

a) 40%

b) 50%

c) 60%

d) 80%
 
Q 3. Who is responsible for valuing unlisted investments at Fair Market Value for a Category III AIF?

a) The fund manager

b) The investment advisor

c) The independent valuer appointed by the Trustee or the Investment Manager

d) None of the above
 
Q 4. What distinguishes liquid securities from illiquid securities?

a) Liquid securities have a ready market with a small number of buyers and sellers, while illiquid securities have a large number of buyers and sellers.

b) Liquid securities have a ready market with a large number of buyers and sellers, while illiquid securities have a small number of buyers and sellers.

c) Liquid securities have a small volume of trades executed daily, while illiquid securities have a large volume of trades executed.

d) None of the above
 
Q 5. What does Customer Acquisition Cost (CAC) measure?

a) Yearly revenue generated by the company

b) Total revenue generated each month by the company

c) Average cost of acquiring a new customer

d) Number of unique users who engage with a product or service daily
 
Q 6. How are money market instruments valued in Category III AIFs?

a) Using book value

b) Using historical cost

c) Mark-to-market process

d) Using discounted rates
 
Q 7. What rate of tax applies to long-term capital gains on the sale of listed equity shares?

a) 20%

b) 25%

c) 10%

d) 30%
 
Q 8. What is the safe harbor limit provided by Rule 11UA(4) for the issue of unquoted equity shares or Compulsory Convertible Preference Shares (CCPS)?

a) 5%

b) 15%

c) 20%

d) 25%
 
Q 9. When are Fund Expenses borne only by a specific Series of Beneficiaries?

a) When they are not specifically attributable to any Series

b) When they are specifically attributable to a Series

c) When they are equally distributed among all Series

d) When they are borne by the Investment Manager
 
Q 10. How many valuers are involved in determining the valuation of unliquidated investments during in-specie distribution?

a) One

b) Two

c) Three

d) Five
 
Q 11. What aspects of fund performance are covered in the "economy-specific details (macro level)" section of fund reporting templates?

- A) Individual company performance

- B) GDP growth, fiscal position, currency rate, and interest rate outlook

- C) Regulatory compliance details

- d) Marketing strategies employed by the fund
 
Q 12. What is the requirement stated in Regulation 20(13) of the AIF Regulations regarding changes in the Sponsor, Manager, or control of the AIF?

- A) Such changes should be ignored as long as they do not affect fund performance

- B) Prior approval from SEBI is required for any changes in the Sponsor, Manager, or control of the AIF

- C) Changes should be reported to investors only if specifically requested

- d) Such changes are not subject to any regulatory oversight
 
Q 13. Why should the focus of fund monitoring include both formal reporting and informal interactions?

a) To minimize investor involvement

b) To increase regulatory scrutiny

c) To improve due diligence processes

d) To simplify decision-making processes
 
Q 14. How should investors react when urgent action is needed to prevent further deterioration of the fund's outcome?

a) By reacting minimally

b) By taking action in time

c) By ignoring the situation

d) By withdrawing investments immediately
 
Q 15. What type of risk is realization risk, as mentioned in the disclosure requirements?

- A) Risk of financial loss due to divestment

- B) Risk of currency devaluation

- C) Risk of reputational damage

- d) Risk of market volatility
 
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