Securities and Exchange Board of India (SEBI) issued a notification on June 25, 2025, under the Certification of Associated Persons in the Securities Markets (CAPS) Regulations, 2007, updating certification requirements for key investment team members of Alternative Investment Funds (AIFs). Under the revised norms, at least one key personnel in the investment team of AIF managers must obtain specific certifications from the National Institute of Securities Market (NISM). For Category I and II AIFs, the required certification can be either NISM Series-XIX-C or the newly introduced Series-XIX-D. For Category III AIFs, the requirement can be fulfilled by passing either Series-XIX-C or the new Series-XIX-E. Existing AIFs are required to comply with this mandate by July 31, 2025. This notification supersedes the earlier one dated May 10, 2024, except for actions already taken under the previous guidelines. The change aims to align certification requirements with fund categories and enhance the regulatory framework for AIF operations.
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 25th June, 2025
NOTIFICATION UNDER SECURITIES AND EXCHANGE BOARD OF INDIA (CERTIFICATION OF
ASSOCIATED PERSONS IN THE SECURITIES MARKETS) REGULATIONS, 2007.
F. No. SEBI/LAD-NRO/GN/2025/249.— In terms of regulation 3 of the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) Regulations, 2007 (hereinafter referred to as “the CAPS Regulations, 2007”), the Board may require, by notification, any category of associated person as defined in the Regulations to obtain requisite certification(s).
1. In terms of sub-clause (i) of clause (g) of regulation 4 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, the Board had issued Notification No. SEBI/LAD-NRO/GN/2024/176 dated May 10, 2024, as per which at least one key personnel, amongst the associated persons functioning in the key investment team of the Manager of an Alternative Investment Fund, shall obtain certification from the National Institute of Securities Market by passing the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/ Series-XIX-C: Alternative Investment Fund Managers/2024/01 dated January 10, 2024 issued by the National Institute of Securities Market.
2. Now, in terms of Regulation 3 of the CAPS Regulations, 2007 read with sub-clause (i) of clause (g) of regulation 4 of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, the Board hereby notifies that:
(i) at least one key personnel, amongst the associated persons functioning in the key investment team of the Manager of Category I Alternative Investment Fund or Category II Alternative Investment Fund or Category I and II Alternative Investment Fund, shall obtain certification from the National Institute of Securities Market by passing either the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/ Series-XIX-C: Alternative Investment Fund Managers/2024/01 dated January 10, 2024 or the NISM Series-XIX-D: Category I and II Alternative Investment Fund Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/ Series-XIX-D: Category I and II Alternative Investment Fund Managers/2025/01 dated April 29, 2025, issued by the National Institute of Securities Market.
(ii) at least one key personnel, amongst the associated persons functioning in the key investment team of the Manager of Category III Alternative Investment Fund, shall obtain certification from the National Institute of Securities Market by passing either the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/ Series-XIX-C: Alternative Investment Fund Managers/ 2024/01 dated January 10, 2024 or the NISM Series-XIX-E: Category III Alternative Investment Fund Managers Certification Examination as mentioned in the communiqué No. NISM/ Certification/ Series-XIX-E: Category III Alternative Investment Fund Managers/2025/02 dated April 29, 2025, issued by the National Institute of Securities Market.
3. The Alternative Investment Funds, existing as on the date of publication of this notification, shall obtain requisite certification on or before July 31, 2025.
4. This notification shall come into force on the date of its publication in the Official Gazette.
5. The Notification No. SEBI/LAD-NRO/GN/2024/176 dated May 10, 2024, except for anything done or omitted to be done under the said notification, shall stand rescinded with the publication of this notification.
BABITHA RAYUDU, Executive Director
[ADVT.-III/4/Exty./191/2025-26]
