PracticeVideosBlogFlashcardsEspañol
All Practice Exams

100+ Free NISM Series XIX-A Practice Questions

Pass your NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors Certification Examination exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More NISM Certifications (India)

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

NISM Series VII Securities Operations and Risk Management

Practice Questions

NISM Series X-B Investment Adviser Level 2

Practice Questions

NISM Series XVI Commodity Derivatives

Practice Questions

NISM-Series-V-A: Mutual Fund Distributors Certification Examination

Practice Questions

NISM-Series-VIII: Equity Derivatives Certification Examination

Practice Questions

NISM-Series-X-A: Investment Adviser (Level 1)

Practice Questions
2026 Statistics

Key Facts: NISM Series XIX-A Exam

100 marks

80 independent MCQs plus 5 caselets of 4 questions each on NISM Series XIX-A

NISM - FAQs on AIF Series XIX-A certification

60%

Passing score is 60 marks out of 100 on the Series XIX-A exam

NISM - Series XIX-A certification page

10% negative marking

Each wrong answer deducts 10% of the marks assigned to that question

NISM - FAQs on AIF Series XIX-A certification

120 minutes

The Series XIX-A examination must be completed in 2 hours

NISM - Series XIX-A certification page

Rs. 1,770

Examination fee inclusive of GST for Series XIX-A

NISM - FAQs on AIF Series XIX-A certification

3 years

Validity of the NISM Series XIX-A certificate

NISM - Series XIX-A certification page

Rs. 20 crore / Rs. 1 crore

Minimum AIF corpus and minimum investor commitment under SEBI (AIF) Regulations 2012

SEBI (Alternative Investment Funds) Regulations, 2012

Category I and II

Series XIX-A covers distributors of Category I and II AIFs; Category III uses Series XIX-B

NISM - Series XIX-A certification page

The NISM Series XIX-A exam is the SEBI-mandated certification for distributors and placement agents of Category I and Category II Alternative Investment Funds in India. It contains 80 independent multiple-choice questions plus 5 caselets of 4 questions each, totalling 100 marks, and must be completed in 120 minutes. The passing score is 60 marks (60%) with 10% negative marking per question, and the fee is Rs. 1,770 inclusive of GST. The syllabus spans AIF structures and SEBI (AIF) Regulations 2012, fund economics, risk and return, investor due diligence, legal documents, valuation, taxation and good practices, with fund due diligence the most heavily weighted unit at 15%. This 100-question bank provides original multiple-choice practice modelled on the official syllabus weightings.

Sample NISM Series XIX-A Practice Questions

Try these sample questions to test your NISM Series XIX-A exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the SEBI (Alternative Investment Funds) Regulations, 2012, an AIF is best described as a:
A.Publicly offered mutual fund scheme
B.Privately pooled investment vehicle that collects funds from investors for investing per a defined policy
C.Listed company raising equity from retail investors
D.Bank deposit scheme guaranteed by the RBI
Explanation: An Alternative Investment Fund is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of those investors. It is distinct from publicly offered mutual funds.
2Which category of AIF includes venture capital funds, SME funds, social venture funds and infrastructure funds?
A.Category I AIF
B.Category II AIF
C.Category III AIF
D.Category IV AIF
Explanation: Category I AIFs invest in start-ups, early-stage ventures, social ventures, SMEs, infrastructure or other sectors the government considers socially or economically desirable. They include venture capital, SME, social venture and infrastructure funds.
3The minimum corpus required for a scheme of an AIF (other than an Angel Fund) under SEBI (AIF) Regulations is:
A.Rs. 5 crore
B.Rs. 10 crore
C.Rs. 20 crore
D.Rs. 50 crore
Explanation: Each scheme of an AIF (other than an Angel Fund) must have a minimum corpus of Rs. 20 crore. This ensures the scheme has sufficient committed capital to pursue its strategy.
4Except for specified categories such as Angel Funds, the minimum investment by an investor in an AIF scheme is generally:
A.Rs. 25 lakh
B.Rs. 50 lakh
C.Rs. 1 crore
D.Rs. 5 crore
Explanation: The general minimum commitment by an investor in an AIF is Rs. 1 crore. For employees or directors of the AIF or the manager, a lower floor of Rs. 25 lakh applies, but the standard investor minimum is Rs. 1 crore.
5What is the maximum number of investors permitted in a scheme of an AIF (other than an Angel Fund)?
A.200
B.500
C.1,000
D.Unlimited
Explanation: A scheme of an AIF (other than an Angel Fund) can have a maximum of 1,000 investors. Angel Funds may have up to 200 angel investors.
6A 'drawdown' in the context of an AIF refers to:
A.The total committed capital of the fund
B.A call by the manager for investors to transfer part of their committed capital
C.The annual management fee charged by the fund
D.The amount distributed back to investors on exit
Explanation: A drawdown (or capital call) is the manager's request for investors to transfer a portion of their committed capital so the fund can make an investment or meet expenses. Capital is typically drawn down over time rather than all at once.
7The 'J-curve' effect commonly observed in private equity and venture capital funds describes:
A.A steadily rising return from year one
B.Early negative returns followed by positive returns as investments mature
C.A return that always ends below the starting value
D.A guaranteed minimum annual yield
Explanation: The J-curve reflects that in the early years a fund shows negative returns due to fees, expenses and unrealised investments, and then turns positive as portfolio companies mature and are exited. Plotted over time the cumulative return resembles the letter J.
8'Carried interest' (or carry) earned by an AIF manager is best described as:
A.A fixed annual fee on committed capital
B.The manager's share of the fund's profits, usually above a hurdle rate
C.A penalty paid by investors for early withdrawal
D.Interest paid on borrowed money by the fund
Explanation: Carried interest is the performance-based share of the fund's profits paid to the manager, typically around 20%, usually only after investors receive their capital back and a preferred return (hurdle). It aligns the manager's incentives with investor returns.
9The 'hurdle rate' (or preferred return) in an AIF refers to:
A.The minimum return investors must receive before the manager earns carried interest
B.The maximum return the fund can generate
C.The rate at which the fund borrows money
D.The management fee percentage
Explanation: The hurdle rate is the minimum rate of return that investors must receive before the manager becomes entitled to carried interest. Profits above the hurdle are then shared, often after a catch-up. It protects investors by ensuring the manager earns carry only on outperformance.
10Which of the following is a defining feature of Category II AIFs under SEBI (AIF) Regulations?
A.They are required to invest only in listed equities
B.They are funds such as private equity and debt funds that do not undertake leverage except for day-to-day operations
C.They must use complex trading strategies and high leverage
D.They receive specific government incentives or concessions
Explanation: Category II AIFs include private equity funds and debt funds that do not get specific incentives or concessions and do not undertake leverage or borrowing other than to meet day-to-day operational requirements as permitted by the regulations.

About the NISM Series XIX-A Exam

The NISM Series XIX-A: Alternative Investment Funds (Category I and II) Distributors Certification Examination is a SEBI-mandated certification for individuals who distribute, sell or act as placement agents for Category I and Category II Alternative Investment Funds in India. The examination creates a common minimum knowledge benchmark covering the alternative investment landscape, the Indian AIF industry, the SEBI (Alternative Investment Funds) Regulations, 2012, fund structuring, risk and return analysis, the investment process and governance, fund due diligence from the investor's perspective, legal documentation and negotiation, valuation, taxation and good practices for distributors. The computer-based test contains 80 independent multiple-choice questions and 5 case-based caselets of four questions each, totalling 100 marks. Candidates have two hours, must score at least 60% to pass, and face 10% negative marking on each question.

Assessment

100 marks: 80 independent multiple-choice questions of 1 mark each, plus 5 case-based caselets, each with 4 multiple-choice questions of 1 mark each (20 marks). All items are multiple choice.

Time Limit

2 hours (120 minutes).

Passing Score

60 marks out of 100 (60%), with negative marking of 10% of the marks assigned to each question.

Exam Fee

Rs. 1,770 (inclusive of GST); payment gateway charges extra. The certificate is valid for three years. (National Institute of Securities Markets (NISM), established by SEBI)

NISM Series XIX-A Exam Content Outline

15%

Overview and Concepts of Alternative Investments

Units 1-3 of the syllabus: the alternative investment landscape, the Indian AIF industry and key concepts. Practice covers traditional versus alternative assets, private equity, venture capital, private debt and infrastructure strategies, and terms such as commitment, drawdown, vintage year, J-curve, carried interest and hurdle rate.

20%

Regulatory Framework and Fund Structuring

Units 4-5: SEBI (AIF) Regulations, 2012, the three AIF categories, registration, minimum corpus of Rs. 20 crore, minimum investor commitment of Rs. 1 crore, maximum 1,000 investors per scheme, sponsor/manager continuing-interest requirements, and structuring AIFs as trusts, LLPs or companies.

20%

Risk, Return, Investment Process and Governance

Units 6-7: measuring risk and return from investor and fund perspectives, IRR and multiples, the investment process from sourcing to exit, fund governance, investment and advisory committees, and alignment of interest between the manager and investors.

20%

Due Diligence, Legal Documents, Valuation, Taxation and Good Practices

Units 8-13: investor due diligence on the manager and fund, the private placement memorandum and contribution agreement, negotiation and side letters, valuation methodologies and registered valuers, pass-through and category-specific taxation, fund monitoring, reporting, exit, and distributor conduct and good practices.

15%

Fund Due Diligence (Investor Perspective)

Unit 8, the single highest-weighted unit at 15%: assessing the manager's track record, team stability, strategy fit, fund terms, fees, conflicts of interest, operational infrastructure and references before an investor commits capital to a Category I or II AIF.

How to Pass the NISM Series XIX-A Exam

What You Need to Know

  • Passing score: 60 marks out of 100 (60%), with negative marking of 10% of the marks assigned to each question.
  • Assessment: 100 marks: 80 independent multiple-choice questions of 1 mark each, plus 5 case-based caselets, each with 4 multiple-choice questions of 1 mark each (20 marks). All items are multiple choice.
  • Time limit: 2 hours (120 minutes).
  • Exam fee: Rs. 1,770 (inclusive of GST); payment gateway charges extra. The certificate is valid for three years.

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

NISM Series XIX-A Study Tips from Top Performers

1Prioritise the higher-weighted units: Fund Due Diligence is 15%, and the regulatory framework, fund structuring, risk and return, investment process, legal documents, valuation and taxation units together dominate the paper.
2Memorise the core SEBI (AIF) Regulations thresholds: Rs. 20 crore minimum corpus, Rs. 1 crore minimum investor commitment, a maximum of 1,000 investors per scheme, and the sponsor/manager continuing-interest requirement.
3Practise distinguishing Category I (venture capital, SME, social venture, infrastructure), Category II (private equity and debt funds) and Category III (hedge-style) AIFs, since the exam tests category boundaries directly.
4Because there is 10% negative marking, avoid pure guessing on items you have no basis for; eliminate options first and answer when you can rule out at least two.
5Drill fund-economics vocabulary - commitment, drawdown, hurdle rate, carried interest, catch-up, clawback, IRR and the J-curve - because caselets often turn on these definitions.
6Work through the 5 case-based caselets under timed conditions; they reward applying due-diligence, taxation and suitability concepts to a scenario rather than recalling isolated facts.

Frequently Asked Questions

How many questions are on the NISM Series XIX-A exam?

The exam carries 100 marks: 80 independent multiple-choice questions of 1 mark each, plus 5 case-based caselets each containing 4 multiple-choice questions of 1 mark (20 marks). Every item is multiple choice.

What is the passing score and is there negative marking?

The passing score is 60 marks out of 100, which is 60%. There is negative marking of 10% of the marks assigned to a question, so an incorrect answer deducts 0.25 marks on a 1-mark question.

How long is the exam and what does it cost?

The exam must be completed in 2 hours (120 minutes). The fee is Rs. 1,770 inclusive of GST, with payment gateway charges extra, and the certificate is valid for three years.

Who needs the NISM Series XIX-A certification?

It is required by SEBI for individuals who distribute, sell or act as placement agents for Category I and Category II AIF units, such as venture capital, SME, infrastructure, private equity and private debt funds. Category III distributors take Series XIX-B instead.

How is Series XIX-A different from Series XIX-B and XIX-C?

Series XIX-A is for distributors of Category I and II AIFs, Series XIX-B is for distributors of Category III AIFs, and Series XIX-C is the certification for AIF Managers and their key investment team. They cover different categories and roles.

Are these official NISM practice questions?

No. These are original OpenExamPrep questions modelled on the published Series XIX-A syllabus and unit weightings. NISM provides the official workbook and study material separately for free download.