NISM Series XV : Research Analyst Certification Exam Notes
Page 19 Of 62
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Category III AIFs use complex investment strategies including use of leverage and derivatives. eg - Hedge funds, PIPE Funds
Category II AIFs do not fall in Category I and III and do not undertake leverage or borrowing. eg - real estate funds, private equity funds, funds for distressed assets, etc. are registered as Category II AIFs.
Retail Participants - individual investors, HNIs or High Net-worth Individuals and UHNIs (Ultra High net-worth individuals), Non Resident Indians (NRIs), Person of Indian origin (PIOs) and Qualified Foreign Investors (QFIs)
Cash trades are the trades where settlement (payment and delivery) occurs on the same trading day (T+0, where 0 defines the time gap in days between trade day and settlement day). Cash trades in Financial Markets are unusual as most contracts are settled between two to three days from the date of trade.
Tom trades are the trades where settlement (payment and delivery) occurs on the day next to the trading day (T+1, where 1 defines the time gap in days between trade and settlement day). Some of the transactions in Foreign Exchange Market (FX market) settle on T+1 basis.
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