Circular Reference: HO/24/13/17(1)2026-IMD-POD-1/I/16895/2026 | Date: July 21, 2026
Background
The Securities and Exchange Board of India (SEBI), vide Circular No. SEBI/HO/IMD/IMD-I POD-1/P/CIR/2025/26 dated February 27, 2025, had introduced the regulatory framework governing Specialized Investment Funds (SIFs). These provisions were subsequently consolidated under Chapter 21 of the SEBI Master Circular for Mutual Funds dated March 20, 2026 ("MF Master Circular").
Paragraph 21.10 of the MF Master Circular laid down the certification requirements applicable to entities engaged in the sale and/or distribution of SIF products. Pursuant to representations received from industry participants, and following consultations with the National Institute of Securities Markets (NISM), SEBI has now reviewed and revised these certification norms.
Revised Certification Framework under Paragraph 21.10
1. Unified Certification for MF and SIF Distribution
Persons employed or engaged (or proposed to be employed or engaged) in the sale and/or distribution of SIF products are now required to hold a valid NISM Series-V-D – Mutual Fund - Specialized Investment Fund Distributors Certification. Notably, entities holding this certification are eligible to distribute both Mutual Fund and SIF products, without the need to separately hold the NISM Series V-A – Mutual Fund Distributors Certification.
2. Continuation of NISM Series V-A for MF-only Distributors
Entities engaged solely in the distribution of Mutual Fund products (and not SIF products) shall continue to comply with the existing NISM Series V-A certification requirement, as prescribed under Gazette Notification No. LAD-NRO/GN/2010-11/09/6422 dated May 31, 2010.
3. Discontinuation of NISM Series XIII Requirement
The existing requirement to hold the NISM Series XIII – Common Derivatives Certification for SIF distribution shall cease to apply with effect from September 21, 2026.
4. Transition Arrangement
To facilitate a smooth migration to the new framework, distributors who hold a valid NISM Series XIII certification obtained on or before September 21, 2026 are exempted from obtaining the NISM Series-V-D certification until the expiry of their existing NISM Series XIII certification. However, during this transition period, such distributors must continue to hold a valid NISM Series V-A certification, in line with the erstwhile framework.
5. Compliance Oversight
AMFI and Asset Management Companies (AMCs) have been entrusted with the responsibility of ensuring compliance with the revised certification requirements by distributors and agents.
Effective Date and Applicability
The circular clarifies that all other provisions of the SEBI Master Circular for Mutual Funds dated March 20, 2026 remain unchanged, and the revised provisions come into force with immediate effect.
Regulatory Basis
The circular has been issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 84 of the SEBI (Mutual Funds) Regulations, 2026, and Regulation 3(1) of the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007.
Key Takeaway
| Category | Certification Requirement |
|---|---|
| MF + SIF distribution | NISM Series-V-D only |
| MF-only distribution | NISM Series V-A |
| SIF distribution (transition) | NISM Series XIII valid till expiry (obtained on/before Sep 21, 2026) + NISM Series V-A |
| SIF distribution (post Sep 21, 2026, new entrants) | NISM Series-V-D |
This move effectively simplifies what was previously a dual-certification requirement (NISM V-A plus NISM Series XIII) into a single, purpose-built certification track for entities engaged in SIF distribution, while preserving compliance continuity for existing certificate holders during the transition window.
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