SEBI Introduces Dedicated Certification for SIF Distributors
The Securities and Exchange Board of India (SEBI) has created a dedicated certification for people who sell or distribute Specialized Investment Fund (SIF) products. A valid NISM Series-V-D (Mutual Fund - Specialized Investment Fund Distributors Certification) now qualifies its holder to distribute both SIF and mutual fund products, without separately holding the NISM Series V-A qualification.
The change was made through SEBI Circular No. HO/24/13/17(1)2026-IMD-POD-1/I/16895/2026 dated 21 July 2026. It came into force immediately and revises paragraph 21.10 of the SEBI Master Circular for Mutual Funds dated 20 March 2026. The circular is addressed to all mutual funds, asset management companies (AMCs), trustee companies, registrar and transfer agents (RTAs) and the Association of Mutual Funds in India (AMFI), and was issued by SEBI's Investment Management Department. All other provisions of the Master Circular remain unchanged.
What the revised paragraph 21.10 says
| Paragraph | Rule |
|---|---|
| 21.10.1 | Anyone employed or engaged, or proposed to be employed or engaged, in selling or distributing SIF products must hold a valid NISM Series-V-D certificate. The holder can distribute both mutual fund and SIF products and does not need a separate Series V-A certificate. |
| 21.10.2 | Persons who sell or distribute only mutual fund products continue to need NISM Series V-A, as specified under Gazette Notification No. LAD-NRO/GN/2010-11/09/6422 dated 31 May 2010. |
| 21.10.3 | The NISM Series XIII (Common Derivatives) requirement for SIF distribution will not apply after 21 September 2026. |
| 21.10.4 | Distributors holding a valid Series XIII certificate obtained on or before 21 September 2026 need not obtain Series-V-D until that certificate expires, provided they also hold a valid Series V-A certificate. |
| 21.10.5 | AMFI and AMCs must ensure that agents and distributors comply. |
Why Series XIII is being phased out
When SEBI first set up SIFs through Circular No. SEBI/HO/IMD/IMD-I POD-1/P/CIR/2025/26 dated 27 February 2025, effective 1 April 2025, it required a distributing entity to have passed the NISM Series XIII Common Derivatives Certification Examination. That reflected the product design: SIF investment strategies may take exposure of up to 25% of net assets in exchange traded derivatives for purposes other than hedging and portfolio rebalancing, and the permitted strategy types are long-short products such as Equity Long-Short Fund, Equity Ex-Top 100 Long-Short Fund, Sector Rotation Long-Short Fund, Debt Long-Short Fund, Sectoral Debt Long-Short Fund, Active Asset Allocator Long-Short Fund and Hybrid Long-Short Fund. The same circular sets a minimum investment of Rs 10 lakh per investor, which does not apply to accredited investors. These provisions were later folded into Chapter 21 of the Master Circular for Mutual Funds.
SEBI says the certification provisions were reviewed after representations from industry participants and discussions with the National Institute of Securities Markets (NISM). The result is a move from a general derivatives qualification to a distribution certificate built around mutual funds and SIFs.
The NISM Series-V-D examination
NISM launched the Series-V-D examination on 22 July 2026. Its stated objective is a common minimum knowledge benchmark for everyone involved in selling and distributing mutual fund and SIF products, including individual distributors, employees of distribution organisations and AMC staff in sales roles.
- 150 multiple-choice questions of 1 mark each, 180 minutes
- Passing score: 90 marks (60%)
- Negative marking: 10% of the marks of a question for each wrong answer
- Fee: Rs 3,000 plus payment gateway charges
- Certificate validity: 3 years
- PAN must be updated in the candidate's registration details to receive a pass certificate
How the transition works
The 21 September 2026 date does two jobs. It is the last date after which Series XIII stops being an entry route for SIF distribution, and it is the cut-off for grandfathering. A distributor whose Series XIII certificate was obtained on or before that date can keep distributing SIFs on the old basis until the certificate expires, but only while also holding a valid Series V-A certificate. Series XIII alone is not enough. Once the Series XIII certificate lapses, Series-V-D is needed to continue with SIF products.
Example: a distributor who cleared Series XIII in October 2025 and holds a valid Series V-A can continue selling SIFs until the Series XIII certificate expires. A new joiner in October 2026 who wants to sell SIFs must clear Series-V-D, and that single certificate will also cover mutual fund sales.
Who is affected and what to do
Because paragraph 21.10.5 puts the compliance duty on AMFI and AMCs, the obligation does not rest only with individual certificate holders. AMCs will need controls that stop uncertified staff or distributors from being mapped to SIF products. Practical steps include:
- listing everyone who distributes, or is scheduled to distribute, SIF products and recording which certificate each person relies on;
- separating three groups: Series-V-D holders, mutual-fund-only distributors with Series V-A, and transitional SIF distributors relying on Series XIII plus Series V-A;
- recording the date each Series XIII certificate was obtained and its expiry date, together with the validity of the person's Series V-A certificate;
- updating empanelment conditions, distributor agreements and certification declarations to refer to revised paragraph 21.10;
- setting system permissions and renewal alerts so that SIF access is switched off when a transitional certificate expires.
RTAs and distribution platforms may also need to align onboarding records with the certification status held by the AMC. For distributors whose work is limited to conventional mutual funds, nothing changes: Series V-A remains the applicable qualification. The circular is a targeted revision of the certification framework and does not alter the investment or operational rules for SIFs.
Updated on 27 September 2026: linked the SEBI circular of 21 July 2026 and the 2025 SIF framework circular, added the Series-V-D exam pattern, fee and validity from NISM, and set out the revised paragraph 21.10 in a table.
