The Securities and Exchange Board of India (Sebi) has launched a unified certification examination for persons selling and distributing mutual funds and Specialised Investment Funds, marking a significant simplification of eligibility requirements for distributors. According to The Economic Times, the new NISM Series V-D – Mutual Fund-Specialised Investment Fund Distributors Certification will allow distributors to sell both mutual fund and SIF products, effectively removing the need for separate NISM Series V-A Mutual Fund Distributors Certification. The existing requirement of holding the NISM Series XIII – Common Derivatives Certification for selling and distributing SIF products will stop applying after September 21, 2026. As per NDTV Profit, Sebi introduced this single certification examination to simplify the eligibility requirements for persons engaged in the sale and distribution of both mutual funds and SIF products.
The new exam addresses industry concerns by removing questions on currency derivatives, which were previously included in the NISM Series XIII exam. As reported by Mint, Sebi does not permit asset management companies (AMCs) to launch SIF products related to currency derivatives, making these questions irrelevant to the product distribution. The previous exam consisted of three sections: currency derivatives, equity derivatives, and interest rate derivatives. The new NISM Series V-D exam will allocate approximately 45% weightage to topics related to mutual fund distribution and will also test distributors on equity derivatives and interest rate derivatives.
The Specialized Investment Fund product was launched by Sebi in February 2025 to bridge the gap between retail-focused mutual funds and portfolio management services (PMS) for high-net-worth investors. According to The Economic Times, SIFs have a minimum ticket size of ₹10 lakh, significantly lower than the ₹50 lakh minimum for PMS. The market regulator has allowed AMCs to launch SIFs in seven strategies: Equity Long Short Fund, Equity Ex-Top 100 Long-Short Fund, Sector Rotation Long-Short Fund, Debt Long-Short Fund, Sectoral Debt Long-Short Fund, Active Asset Allocator Long-Short Fund, and Hybrid Long-Short Fund. These products are designed for investors willing to take higher risks than those associated with mutual funds. Assets under management of SIFs rose 29% to ₹17,858 crore at the end of June from ₹13,814 crore a month earlier, indicating growing investor interest in these products aimed at sophisticated investors through hedging, derivatives and long-short investment strategies.
The exam changes come after reports of malpractice in the industry, with Mint reporting in May that some distribution platforms were allowing unqualified sub-brokers to sell SIFs in violation of norms due to a shortage of approved sellers. According to The Economic Times, distributors who already have a valid NISM Series XIII certification obtained on or before September 21, 2026, do not need to take the new NISM Series V-D certification until their current certificate expires. Until then, they must continue holding a valid NISM Series V-A Mutual Fund Distributors Certification under the old rules. As per NDTV Profit, during this transition period, such distributors will continue to be required to hold a valid NISM Series V-A – Mutual Fund Distributors Certification under the existing framework. The new certification is expected to make the certification process easier for distributors at a time when SIFs are gaining traction among investors looking for products that offer more flexibility than traditional mutual funds.
