NISM Series XIX-C AIF Managers Certification Exam 27
NISM Series XIX-C AIF Managers Certification Exam 27
1. How do angels fund pool capital?
a) Through government grants
b) Through loans from banks
c) By pooling capital from high-net-worth angel investors
d) Through crowdfunding platforms
Q 2. What is the primary responsibility of Investment Managers regarding liquidity management in Category III AIFs?
A) Ensure high liquidity to maximize returns
B) Establish and maintain efficient liquidity management policy and process
C) Minimize liquidity to reduce risks
d) Avoid disclosing liquidity status to investors
Q 3. Which of the following commodities can be involved in physical settlement of derivative contracts by Category III AIFs?
a) Real estate
b) Agricultural products
c) Software licenses
d) Bonds
Q 4. What notice period does SEBI typically provide to an AIF before ordering an inspection?
A) 5 days
B) 10 days
C) 15 days
d) No notice period is provided
Q 5. What is the significance of the term 'Overseas Citizen of India' (OCI) under FEMA?
a) OCI holders are treated as non-residents under all circumstances
b) OCI holders are deemed Indian residents for all purposes
c) OCI holders are considered overseas citizens of India
d) None of the above
Q 6. What are some of the conditions for registration of an Alternative Investment Fund (AIF) under SEBI regulations?
A) The AIF must engage in activities other than permitted activities
B) The AIF must not comply with SEBI regulations
C) The AIF must not inform SEBI of any false or misleading information
d) The AIF must not abide by the provisions of the Act
Q 7. What is the minimum investment threshold for employees of an AIF to invest in AIF schemes?
a) INR 10 lakh
b) INR 15 lakh
c) INR 20 lakh
d) None of the above
Q 8. What distinguishes an open-ended fund structure from a close-ended fund structure?
A) Open-ended funds allow redemption of capital, while close-ended funds do not
B) Open-ended funds have a longer commitment period than close-ended funds
C) Open-ended funds require investors to make capital commitments, while close-ended funds do not
d) Open-ended funds require investors to pay an exit load, while close-ended funds do not
Q 9. What is the purpose of the Aggregate Escrow Demat Account?
a) To hold demat units for AIF managers
b) To hold demat units for investors who have not provided their demat account details
c) To hold demat units for accredited investors
d) To hold demat units for Custodians
Q 10. What is the primary factor determining whether downstream investment by an Indian Investment Vehicle is considered a foreign investment?
a) Type of industry sector
b) Level of foreign investor involvement
c) Value of the investment
d) None of the above
Q 11. What is the purpose of distinguishing between NRIs and PIOs under FEMA?
a) To regulate their investments differently
b) To provide tax exemptions for NRIs only
c) Restricting PIOs from investing in certain sectors
d) None of the above
Q 12. What information should AIFs collect from investors for FATCA and CRS compliance?
a) Name, address, and nationality only
b) Gross Annual Income and Occupation Only
c) Permanent Account Number (PAN) only
d) None of the above
Q 13. What must be sought before the expiration of the fund's tenure or extended tenure for an LVF?
a) Approval from SEBI
b) Approval from the Ministry of Finance
c) Approval from unit holders
d) Approval from the Trustee/Board of Directors/Designated Partners
Q 14. Which of the following is considered a traditional investment?
a) Direct investment in real estate development projects
b) Exchange-traded funds (ETFs)
c) Hedge funds
d) Closed-ended debt funds with illiquid assets such as real estate exposures
Q 15. What is the primary function of a mutual fund?
a) Directly owning shares of companies
b) Pooling the savings of investors with a common financial goal
c) Providing guaranteed returns to investors
d) Actively trading in the stock market