SEBI, NISM Launch Combined Certification to Break Mutual Fund and SIF Distribution Bottlenecks

SEBI, NISM Launch Combined Certification to Break Mutual Fund and SIF Distribution Bottlenecks​

Streamlined Access for Specialized Investment Funds​

The Securities and Exchange Board of India (SEBI) and the National Institute of Securities Markets (NISM) have formalised a new certification examination for distributors of mutual funds and specialized investment funds (SIFs). This initiative directly addresses a significant bottleneck that had emerged while attempting to expand the distribution network for new investment products.

The regulatory move focuses on the complexity of SIF strategies, which posed challenges for the expansion of the distributor base. To ensure market integrity, NISM has specified the NISM-Series-V-D: Mutual Fund & Specialized Investment Fund Distributors Certification Examination as the required standard for associated persons involved in sales and distribution.

Overcoming Previous Distribution Barriers​

The new certification becomes available to candidates starting July 22. This rollout follows reports that distributors previously struggled with the breadth and difficulty of the NISM Series XIII examination, which covered equity, interest rate and currency derivatives.

Limited examination slots, high subject matter complexity and the associated costs of certification were primary factors that slowed the onboarding of new distributors. In response, asset management companies have initiated structured engagement programmes and training sessions to help distributors prepare for the required certification process.

Detailed Examination Structure and Weighting​

The new computer-based examination will focus on mutual fund distribution, equity derivatives and interest rate derivatives. To ensure a balanced evaluation, the exam modules are weighted specifically to reflect the importance of each asset class.

Mutual fund distribution carries 45% of the total weightage, while equity derivatives account for 35%. Interest rate derivatives represent the remaining 20% of the examination criteria.

Candidates will participate in a three-hour examination consisting of 150 multiple-choice questions, each carrying one mark. The passing score is set at 60%, or 90 marks out of 150, and a negative marking system of 10% applies to the marks assigned to incorrect answers.

The certification fee is set at ₹3,000 plus applicable taxes. This requirement covers distributors, agents, brokers, authorized persons and other associated persons employed in the sale and distribution of mutual fund and SIF products.

Regulatory Oversight and Market Growth​

This development follows remarks made by SEBI Whole Time Member Amarjeet Singh earlier this month. He noted that the regulator and NISM were working on a combined certification examination to streamline the requirements for mutual fund and SIF distributors.

The initiative comes at a time of significant growth in the specialized investment sector. As of June 2026, SIF AUM rose from ₹13,814 crores to ₹17,858 crores, highlighting the increasing scale of these investment vehicles.

During the month of June alone, 717 distributors became SIF authorized distributors. This expansion brings the total count of authorized distributors to nearly 7,000 as the market continues to scale.