The National Institute of Securities Management (NISM) conducts a mandatory exam for executives at alternative investment funds (AIFs) to maintain regulatory compliance. However, many fund managers report high failure rates, with only 36-40% passing recently due to the exam’s focus on Category-3 funds, which doesn’t reflect the diverse operations of different fund categories. The Securities and Exchange Board of India (Sebi) has extended the compliance deadline to March 2025. Industry representatives are advocating for changes in the exam structure and exemptions for experienced managers, arguing that existing qualifications should suffice. The Indian Venture and Alternate Capital Association is addressing these concerns with Sebi.