Markets regulator SEBI has introduced a single certification examination for persons selling and distributing mutual funds and Specialised Investment Funds (SIFs), a move aimed at simplifying eligibility requirements for distributors.

Key Highlights

• SEBI introduced a single NISM Series V-D certification for mutual fund and SIF distributors.
• SIF assets under management rose 29% to Rs 17,858 crore in June from Rs 13,814 crore in May.

Under the new framework, any person employed or engaged in the sale or distribution of Specialised Investment Fund products will need to hold a valid NISM Series V-D – Mutual Fund-Specialised Investment Fund Distributors Certification, SEBI said in a circular issued. The new certification will allow distributors to sell both mutual fund and SIF products, removing the need for them to separately obtain the NISM Series V-A – Mutual Fund Distributors Certification.

SEBI also said the existing requirement of holding the NISM Series XIII – Common Derivatives Certification for selling and distributing SIF products will stop applying after September 21, streamlining the qualification pathway for distributors going forward.

The regulator has provided a transition period for existing distributors. Those who hold a valid NISM Series XIII – Common Derivatives Certification obtained on or before September 21 will not have to obtain the new Series V-D certification until their current derivatives certification expires. During this transition period, these distributors will still need to hold a valid NISM Series V-A – Mutual Fund Distributors Certification under the current framework.

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Why This Matters

The change is expected to make the certification process easier for distributors at a time when SIFs are gaining traction among investors looking for products that offer more flexibility than traditional mutual funds. SEBI had introduced the SIF framework in February 2025 to bridge the gap between regular mutual funds and high-ticket Portfolio Management Services (PMS). SIFs require a minimum investment of Rs 10 lakh and are aimed at sophisticated investors.

SIFs allow greater flexibility through strategies such as hedging, derivatives, and long-short positions, setting them apart from conventional mutual funds, which operate under tighter regulatory restrictions. This added complexity is part of the reason SEBI has historically required more specialised certification for distributors dealing in these products.

The move also comes as assets in SIFs have started growing rapidly. The assets under management (AUM) of SIFs rose 29% to Rs 17,858 crore at the end of June, up from Rs 13,814 crore a month earlier — signalling growing investor interest in this relatively new category of investment products.

By creating a single certification for SIFand mutual fund distribution, SEBI is trying to reduce overlap in compliance requirements while ensuring that distributors still have product-specific knowledge before selling more complex investment products. The move reflects a broader regulatory effort to balance ease of doing business for distributors with adequate investor protection safeguards, particularly as SIFs continue to attract a growing pool of sophisticated investors seeking exposure beyond traditional mutual fund structures.