SEBI, vide its circular dated December 30, 2025, has prescribed mandatory certification requirements for Compliance Officers of Managers of Alternative Investment Funds (AIFs) pursuant to Regulations 20(17) and 20(18) of the SEBI (AIF) Regulations, 2012. The Compliance Officer is required to obtain the NISM Series III-C: Securities Intermediaries Compliance (Fund) Certification, as notified by NISM on November 20, 2025, to meet the eligibility criteria specified by SEBI.
The circular mandates that with effect from January 1, 2027, only individuals holding the said NISM certification may be appointed or continue to act as Compliance Officers of AIF Managers. Further, trustees/sponsors/managers must ensure that compliance with this requirement is specifically reported in the Compliance Test Report submitted under the SEBI Master Circular dated May 7, 2024.
The circular is effective immediately and has been issued under SEBI’s statutory powers to safeguard investor interests and strengthen regulatory compliance in the AIF ecosystem.
