Sebi eases rules for mutual fund, SIF distributors with single certification exam

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

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 on Tuesday.

The new certification will allow distributors to sell both mutual fund and SIF products. This removes the need for such distributors 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.

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.

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. SIFs require a minimum investment of Rs 10 lakh and are aimed at sophisticated investors.

The products allow greater flexibility through strategies such as hedging, derivatives and long-short positions. This makes them different from conventional mutual funds, which operate under tighter restrictions.

The move also comes as assets in SIFs have started growing. The assets under management of SIFs rose 29% to Rs 17,858 crore at the end of June from Rs 13,814 crore a month earlier.

By creating a single certification for mutual fund and SIF distribution, Sebi is trying to reduce overlap in compliance requirements while ensuring that distributors have product-specific knowledge before selling more complex investment products.