Curriculum-Alternative Investment Funds (Category III) Distributors

UNIT 1 – OVERVIEW OF ALTERNATIVE INVESTMENTS
A. Introduction to Alternative Investments
B. Alternative Investment Avenues
C. Alternative Investments – Antecedents and Growth
D. Role of Alternative Investments in Portfolio Management

UNIT 2 – GROWTH OF ALTERNATIVE INVESTMENT FUNDS IN INDIA AND SUITABILITY OF CATEGORY III AIFs
A. Evolution and Growth of Category III AIFs in India
B. Types of AIFs
C. Comparison of Categories
D. Suitability and Enablers for Category III AIF Products in India
E. Current Category III AIF Market Status

UNIT 3: INTRODUCTION TO CATEGORY III AIF ECOSYSTEM
A. Investments under Category III AIF
B. Characteristics of Category III AIF
C. Concepts prevalent in the Category III AIF industry:
D. Investments by Category III AIFs
E. Comparison between Category III AIF and Traditional Investments
F. Hedge Funds: Global Market Overview
G. Category III AIF as a Risk Management tool

UNIT 4: CATEGORY III AIF: FUND STRUCTURES AND SERVICE PROVIDERS
A. Fund structures of a Category III AIF
B. Service Providers in the Category III AIF industry

UNIT 5: REGULATORY FRAMEWORK
A. SEBI (Alternative Investment Funds) Regulations, 2012
B. Registration of a Category III Alternative Investment Fund
C. Accredited Investors, Accreditation Agencies and the Accredited Investor Framework (“AI Framework”)
D. Conditions for investment in a Category III AIF
E. Private Placement Memorandum (“PPM”)
F. Guidelines on Operational, Prudential and Reporting Norms
G. Conditions for investments by a Category III AIF
H. Category III AIFs: Open-ended v/s Close-ended
I. Fund raising process – Regulatory requirements
J. Concentration Limits
K. General obligations and responsibilities of a Category III AIF
L. Foreign Account Tax Compliance Act (“FATCA”) and Common Reporting Standard (“CRS”)
M. Compliance Test Reporting (“CTR”)
N. SEBI (Prohibition of Insider Trading) Regulations, 2015
O. Prevention of Anti-Money Laundering Act, 2002
P. Foreign Exchange Management Act, 1999
Q. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

UNIT 6: FEES STRUCTURE, FUND PERFORMANCE AND BENCHMARKING
A. Fee Structure of a Category III AIF
B. Fund Performance Measurement Tools
C. Performance Benchmarking

UNIT 7: CATEGORY III AIF INVESTMENT STRATEGIES AND DUE DILIGENCE PROCESS
A. Equity-Market Investment Strategies
B. Global-Macro Strategy
C. Convertible Arbitrage Strategy
D. Event-driven Investment Strategies
E. Due Diligence Process

UNIT 8: VALUATION
A. Net Asset Value (“NAV”)
B. Valuation Techniques
C. Computation of NAV for a Category III AIF vs. NAV attributable to a series of units issued to investors
D. Role of third-party Registered Valuers

UNIT 9: TAXATION
A. Comparison of Tax-regime among all categories of AIFs
B. Taxation principles applicable to Trust structure
C. Tax applicability on income from Category III AIFs
D. Goods and Services Tax (“GST”)
E. Taxation on distribution/ redemption of units by Category III AIFs
F. Taxation on transfer of Category III AIF units by investors
G. Tax applicability to Category III AIFs in International Financial Service Centre (“IFSC”)
H. Tax impact on performance of Category III AIF

UNIT 10: GOOD PRACTICES
A. Fund Pitch Book – Role and Significance
B. Role of Distributors – Pre-investment and Post-investment
C. Client Confidentiality and Data Privacy at Distributor Level
D. Code of Conduct
E. Importance of Insurance for a Category III AIF