/60

NISM AIF Managers Practice Examination

Total Marks: 100 | Time: 2 Hours

Section A: 60 questions (1 mark each) | Section B: 4 Cases with 5 questions each (2 marks each)

1 / 60

An 'Offer for Sale' (OFS) in an IPO allows:

2 / 60

The term 'Round Tripping' in the context of PMLA refers to:

3 / 60

In a 'Management Buyout' (MBO), the acquirers of the company are primarily:

4 / 60

What is the primary purpose of the 'Net Asset Value' (NAV) of a fund?

5 / 60

A 'warehousing' of investments by an AIF manager before the fund's first close refers to:

6 / 60

Which valuation method would be most appropriate for an early-stage, pre-revenue startup with a novel technology?

7 / 60

What is the primary function of the 'Sponsor' of an AIF?

8 / 60

The SEBI (Prohibition of Insider Trading) Regulations, 2015, are designed to prevent:

9 / 60

Which of the following would be considered 'Business Risk' for an investee company?

10 / 60

A 'Venture Debt Fund' primarily provides:

11 / 60

In the context of FDI, the 'Automatic Route' means:

12 / 60

The 'final close' of an AIF scheme indicates that:

13 / 60

A 'side pocket' arrangement in a hedge fund (Category III AIF) is used to:

14 / 60

What does 'EBITDA' stand for in financial analysis?

15 / 60

A 'Master-Feeder' structure is often used to:

16 / 60

What is the primary function of an 'Accreditation Agency' under the SEBI framework?

17 / 60

If an AIF is structured as a company, what is the maximum number of investors it can typically have in a private placement as per the Companies Act, 2013?

18 / 60

A 'blind pool' AIF is one where:

19 / 60

What does a 'distribution waterfall' in an AIF's PPM describe?

20 / 60

The 'price to earnings' (P/E) multiple is an example of which valuation approach?

21 / 60

The 'Compliance Test Report' (CTR) is prepared by the Investment Manager and submitted to:

22 / 60

What is the primary purpose of the 'Stewardship Code' for AIFs?

23 / 60

Under the Foreign Exchange Management Act (FEMA), an investment made by a person resident outside India on a repatriable basis is governed by:

24 / 60

The concept of 'Co-investment' allows an AIF's investor to:

25 / 60

Which valuation approach is most suitable for a distressed company facing potential liquidation?

26 / 60

What is the primary difference between a 'right of first refusal' (ROFR) and a 'right of first offer' (ROFO)?

27 / 60

The 'First Close' of an AIF scheme signifies that:

28 / 60

The investment management agreement (IMA) is a contract between the AIF (represented by the trustee) and the:

29 / 60

A 'Social Impact Fund' is a sub-category of which type of AIF?

30 / 60

What does a 'Full Ratchet' anti-dilution provision do for an early-stage investor?

31 / 60

An 'in-specie' distribution during the winding-up of an AIF means:

32 / 60

The 'terminal value' in a DCF valuation represents:

33 / 60

If an AIF wants to invest in a company that is an 'associate' of its Manager, it requires the approval of:

34 / 60

Under the Prevention of Money Laundering Act (PMLA), an AIF is considered a:

35 / 60

The process of conducting a comprehensive examination of a potential investee company's business, financial, and legal affairs is known as:

36 / 60

What is the minimum lock-in period for an investment made by an Angel Fund?

37 / 60

A 'tag-along' right in a shareholders' agreement gives a minority investor the right to:

38 / 60

The 'Hurdle Rate' in an AIF's fee structure represents:

39 / 60

The term 'skin-in-the-game' for a sponsor or manager of an AIF refers to their:

40 / 60

A 'downround' financing occurs when a company raises capital at a valuation that is:

41 / 60

Which SEBI regulation governs the issuance of shares in an IPO by an unlisted company?

42 / 60

A 'Liquidation Scheme' launched by an AIF is for the purpose of:

43 / 60

Which of the following is NOT an 'Accredited Investor' by default under the SEBI framework?

44 / 60

Which type of risk is associated with the means of financing a firm's assets, particularly the use of debt?

45 / 60

The Foreign Account Tax Compliance Act (FATCA) primarily requires an AIF to:

46 / 60

According to SEBI, if an AIF makes a 'material change' to its PPM, such as a change in the manager, what must it provide to dissenting investors?

47 / 60

The performance metric that measures the amount of cash distributed to investors relative to the capital they have contributed is:

48 / 60

The 'Enterprise Value (EV)' of a company represents:

49 / 60

What is the minimum investment amount for an investor in a Special Situation Fund (SSF), unless they are an accredited investor?

50 / 60

The 'pass-through' tax status granted to Category I and II AIFs in India means that:

51 / 60

An AIF manager is considering an exit from a portfolio company. The exit strategy that involves selling the stake to another private equity fund or a corporate buyer in the same industry is known as a:

52 / 60

What is the primary role of a 'Custodian' appointed by an AIF?

53 / 60

A 'Clawback' provision in an AIF's agreement is designed to:

54 / 60

The document that provides a non-binding outline of the primary terms and conditions of a proposed investment between an AIF and an investee company is the:

55 / 60

A 'Special Situations Fund' (SSF) under Category I AIF is primarily designed to invest in:

56 / 60

Which of the following is NOT a primary characteristic of a valid benchmark for fund performance?

57 / 60

The 'J-Curve' effect in a private equity fund illustrates that:

58 / 60

Which entity in the securities market holds securities of investors in electronic form?

59 / 60

The component of the required rate of return that compensates an investor for postponing consumption, even with no inflation or uncertainty, is known as the:

60 / 60

If an AIF invests in an unlisted company, for how long must the company's shares be held to be considered a 'long-term capital asset' for tax purposes?

Your score is

0%