NISM Certifications · NISM-Series-XXI-A: Portfolio Management Services (PMS) Distributors · Collective Investment Vehicles
Which of the following AIF categories under SEBI regulations covers funds that invest in start-ups, early-stage ventures and social ventures, and are considered to have positive spillover effects on the economy?
Category I AIF is correct. SEBI places funds investing in start-ups, early-stage ventures, social ventures, SMEs and infrastructure in this category because they are seen as having positive spillover effects on the economy. Category II and III cover other strategies.
- ACategory I AIFCorrect
- BCategory II AIF
- CCategory III AIF
- DPortfolio Managers' discretionary account
Explanation
Category I AIFs invest in start-ups, early-stage ventures, social ventures, SMEs, infrastructure and other sectors considered socially or economically desirable. Category II covers funds such as private equity and debt funds not falling in I or III. Category III employs complex or diverse trading strategies and may use leverage.
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