The Securities and Exchange Board of India (SEBI) on December 30, 2025, issued a circular mandating certification requirements for Compliance Officers of Managers of Alternative Investment Funds (AIFs), in terms of Regulations 20(17) and 20(18) of the SEBI (Alternative Investment Funds) Regulations, 2012. The measure aims to strengthen compliance standards and regulatory oversight within the AIF ecosystem.
Under the circular, Compliance Officers of AIF Managers are required to obtain certification by passing the NISM Series-III-C: Securities Intermediaries Compliance (Fund) Certification Examination, as specified by the National Institute of Securities Market. SEBI has further clarified that with effect from January 1, 2027, only individuals holding the said certification shall be appointed as, or continue to act as, Compliance Officers of Managers of AIFs.
Additionally, trustees, sponsors, and managers of AIFs are required to ensure that compliance with this circular is duly reported in the Compliance Test Report submitted under the applicable SEBI Master Circular. The circular has come into force with immediate effect and has been issued to protect investor interests and promote the orderly development of the securities market.
[Circular No. HO/19/(8)2025-AFD-POD1/I/1266/2025]
