**Executive Summary**
This circular, issued by the Securities and Exchange Board of India (SEBI) on December 30, 2025, outlines the certification requirements for Compliance Officers of Managers of Alternative Investment Funds (AIFs). Effective January 1, 2027, only NISM Series-III-C certified individuals can be appointed or continue as Compliance Officers. AIF trustees/sponsors/managers must ensure their Compliance Test Reports align with this circular.
**Key Points / Main Content**
* **Certification Requirement:**
* AIF Managers' Compliance Officers must obtain certification from the National Institute of Securities Market (NISM) by passing the NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination.
* Compliance Officers should reference the NISM communique No. NISM/Certification/Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination /2025/01/November 20, 2025 for exam details.
* **Effective Date:**
* From January 1, 2027, only certified individuals can be appointed or continue as Compliance Officers of AIF managers.
* **Compliance Test Report:**
* Trustees/sponsors/managers of AIFs must ensure that the 'Compliance Test Report' prepared by the manager in terms of para 15.2 of SEBI Master Circular No. SEBI/HO/AFD-1/AFD-1-P0D/P/CIR/2024/39 dated May 07, 2024, includes compliance with the provisions of this circular.
* **Immediate Effect:**
* The circular is effective immediately.
* **Authority:**
* This circular is issued under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 20(18) of AIF Regulations and Regulation 3(1) of SEBI (Certification of Associated Persons in the Securities Markets) Regulations
**Impact Analysis**
**Managers of AIFs**
*Impact:*
Need to ensure their existing and future Compliance Officers obtain the necessary NISM Series-III-C certification.
*Action Required:*
* Facilitate certification of current Compliance Officers.
* Ensure new Compliance Officer appointments meet certification criteria from January 1, 2027.
**Compliance Officers of Managers of AIFs**
*Impact:*
Required to obtain NISM Series-III-C certification to continue in their role beyond January 1, 2027.
*Action Required:*
* Register for and pass the NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination.
**Trustee/sponsor/manager of AIF**
*Impact:*
'Compliance Test Report' needs to include compliance with the provisions of this circular.
*Action Required:*
* Update the Compliance Test Report.
Key Entities Referenced
SEBI (Alternative Investment Funds) Regulations, 2012: Regulations governing Alternative Investment Funds (AIFs) in India, specifically referenced regarding the appointment and eligibility of Compliance Officers.
Securities and Exchange Board of India Act, 1992: The governing act that establishes the powers of SEBI, which is referenced in the issuance of this circular.
Securities and Exchange Board of India (SEBI): The primary regulator for securities markets in India, issuing the circular regarding certification requirements for Compliance Officers of AIF managers.
NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination: The specific certification examination required for Compliance Officers of AIF Managers, administered by the National Institute of Securities Markets.
Alternative Investment Funds (AIFs): The subject of the circular, with the policy outlining certification requirements for compliance officers of managers of AIFs.
CIRCULAR
HO/19/(8)2025-AFD-POD1/I/1266/2025 December 30, 2025
To,
All Alternative Investment Funds (AIFs)
Sir/Madam,
Sub: Certification requirement for Compliance Officers of Managers of AIFs
1. In terms of Regulation 20(17) of SEBI (Alternative Investment Funds) Regulations,
2012 (“AIF Regulations”), the Manager shall appoint a Compliance Officer who
shall be responsible for monitoring compliance with the provisions of the Act, rules
and regulations, notifications, circulars, guidelines, instructions or any other
directives issued by the Board. Further, in terms of Regulation 20(18) of the AIF
Regulations, the Compliance officer shall satisfy the eligibility criteria as may be
specified by the Board from time to time.
2. In this regard, the following is specified:
2.1. The Compliance Officer of Manager of an AIF shall obtain certification from
the National Institute of Securities Market by passing the NISM Series-III-C:
Securities Intermediaries Compliance (Fund) Certification Examination as
mentioned in the communique No. NISM/Certification/Series-III-C: Securities
Intermediaries Compliance (Fund) Certification Examination
/2025/01/November 20, 2025 issued by the National Institute of Securities
Market.
2.2. Managers of AIFs shall ensure that, with effect from January 01, 2027, only
those persons who have obtained the aforesaid certification shall be appointed
as or shall continue to act as compliance officer of managers of AIFs.
3. The trustee/sponsor/manager of AIF, as the case may be, shall ensure that the
‘Compliance Test Report’ prepared by the manager in terms of para 15.2 of SEBI
Master Circular No. SEBI/HO/AFD-1/AFD-1-PoD/P/CIR/2024/39 dated May 07,
2024, includes compliance with the provisions of this circular.
4. This circular shall come into force with immediate effect.
Page 1 of 25. This circular is issued with the approval of the competent authority.
6. This circular is issued in exercise of powers conferred under Section 11(1) of the
Securities and Exchange Board of India Act, 1992, read with Regulation 20(18) of
AIF Regulations and Regulation 3(1) of SEBI (Certification of Associated Persons
in the Securities Markets) Regulations, to protect the interests of investors in
securities and to promote the development of, and to regulate the securities
market.
7. The circular is available on SEBI website at www.sebi.gov.in under the categories
"Legal framework - Circulars" and "Info for - Alternative Investment Funds”.
Yours faithfully,
Anshul Jagdish Goyal
Deputy General Manager
Tel no.: +91-22-26449389
anshulg@sebi.gov.in
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