The Securities and Exchange Board of India (Sebi) has simplified the certification framework for distributors of Specialised Investment Funds (SIFs), allowing them to sell both mutual funds and SIFs under a single qualification as the regulator looks to streamline the rollout of the new investment product.
In a circular issued on Tuesday, Sebi said persons engaged in the sale and distribution of SIFs will now be required to hold the NISM Series V-D – Mutual Fund–Specialised Investment Fund Distributors Certification, replacing the earlier requirement of multiple certifications. The revised framework follows representations from industry participants and discussions with the National Institute of Securities Markets (NISM), which reviewed the existing certification requirements.
Under the revised norms, holders of the Series V-D certification will be eligible to distribute both mutual funds and SIFs, eliminating the need to separately obtain the NISM Series V-A – Mutual Fund Distributors Certification
However, distributors engaged exclusively in selling mutual fund products will continue to be governed by the existing Series V-A certification requirement.
Transition window for existing distributors
Sebi has also phased out the requirement for SIF distributors to hold the NISM Series XIII – Common Derivatives Certification, which will no longer be mandatory after September 21, 2026.
To ensure a smooth transition, distributors who have obtained the Series XIII certification on or before September 21, 2026, will be allowed to continue distributing SIFs without obtaining the new Series V-D certification until their existing derivatives certification expires. During this period, they will also need to maintain a valid Series V-A Mutual Fund Distributors Certification.
The revised framework comes into force with immediate effect.
The move removes an additional compliance layer for distributors entering the SIF segment by replacing the earlier dual-certification structure with a dedicated SIF certification. The change is expected to make it easier for mutual fund distributors to expand into the specialised investment products segment while maintaining a distinct qualification tailored to SIFs.
Sebi introduced the SIF framework in February 2025 to bridge the gap between conventional mutual funds and Portfolio Management Services (PMS), offering sophisticated investors access to more flexible investment strategies, including hedging, derivatives and long-short positions. The products require a minimum investment of ₹10 lakh.
The segment has witnessed steady growth since its launch. Assets under management (AUM) of SIFs rose nearly 29% to ₹17,858 crore at the end of June from ₹13,814 crore a month earlier, reflecting increasing investor adoption.