SEBI Revises Certification Requirements For Distribution Of Specialized Investment Funds

The Securities and Exchange Board of India (SEBI) on Tuesday revised the certification requirements for entities engaged in the sale and distribution of Specialized Investment Funds (SIFs).

Under the revised framework, persons engaged in the sale and distribution of SIF products must hold a valid "NISM Series-V-D – Mutual Fund – Specialized Investment Fund Distributors Certification." The certification also authorises them to distribute both Mutual Fund and SIF products without requiring a separate "NISM Series V-A – Mutual Fund Distributors Certification."

SEBI clarified that entities distributing only Mutual Fund products must continue to hold the existing NISM Series V-A certification.

The regulator has also discontinued the requirement of holding the "NISM Series XIII – Common Derivatives Certification" for the sale and distribution of SIF products with effect from September 21, 2026.

As a transitional measure, SEBI has allowed SIF distributors holding a valid NISM Series XIII certification obtained on or before September 21, 2026, to continue distributing SIFs until their certification expires, without obtaining the new NISM Series V-D certification. They must, however, continue to hold a valid NISM Series V-A certification during this period.

Further, SEBI has directed the Association of Mutual Funds in India and Asset Management Companies to ensure that distributors and agents comply with the revised certification requirements.