Contact No
+91-9465331815
+91-9465331815
Contact Email
cayogeshmehra@gmail.com
cayogeshmehra@gmail.com
Alternative Investment Funds are established in India in the form of trust, Company, LLP or body corporate to collect funds from sophisticated investors (Indian or Foreign) as an investment as per the defined investment policy to return benefits to the investors in the form of Return on Investment. AIFs include venture capital, private equity funds, debt funds, etc.
AIFs are privately pooled investment vehicles. In laymen terms, AIFs collect the funds from investors and then put such funds to investment by providing a return on investment to the investors. They provide investors with a risk/return profile different from that of equities, bonds, etc. They are slightly related to bonds or stocks, provide great return and are less volatile.
Following are the different types of categories under which an applicant can apply for AIFs registration in India:
These kinds of AIFs primarily invest in startups, early-stage ventures, social ventures, infrastructure funds, SMEs, etc. These AIFs are beneficial in enhancing the overall Indian Economy, thus get incentives by SEBI and government.
These funds are not allowed to borrow for any purpose other than to carry day-to-day transactions. These funds invest in any form of combination and include private equity funds, real estate private equity funds, debt funds, etc.
Under these funds, there are short-term investments made, and later they are sold as hedge funds to make short-term benefits. Various hedge funds, PIPE funds, etc. form this category of AIFs.
Following conditions are necessary to be fulfilled for getting registered as AIFs:
As per SEBI guidelines, the following entities are not permitted to be registered as AIFs:
Following are the step by a step registration process of Alternative Investment Fund:
An applicant shall apply in form A of SEBI (Alternative Investment Funds) Regulations, 2012 along with necessary following documents attached thereto:
Furnish an authorization letter in case an applicant or entity has authorized any director/promoter/or any such officer to act as an authorized signatory.
To know whether an applicant is eligible or ineligible to be registered as AIF shall study the SEBI guidelines thoroughly.
In case the applicant is registered with SEBI as a venture capital fund, it shall provide the details regarding the same in the cover letter. As well as it needs to report in covering letter whether it has been undertaking any activity as AIF or is applying registration for the new fund.
Online application is filed as per the guidelines of SEBI in this behalf. Properly filled, numbered, duly signed and stamped Form A accompanies by necessary documents and application fee of INR 100000 by way of a draft drawn in the favour of The Securities and Exchange Board of India, payable at Mumbai shall be submitted for the grant of certificate of registration.
SEBI within 21 days of receipt of an application shall verify and reply to the applicant. Application is evaluated for its correctness by SEBI and SEBI on being satisfied with the same shall approve the application.
On receipt of approval of SEBI, an applicant shall submit the following registration fee for the issuance of Certificate of Registration:
There are certain following restrictions on the fundraising of AIFs and investments made by such AIFs:
Following are the limits imposed on the number of investors or members under AIF regulations:
Investors who have any grievances or complaints against AIFs shall redress the same. SEBI for this purpose has established a web-based centralized grievance redressal system known as SCORES (SEBI Complaint Redressal System).
AIF shall resolve the dispute, through its manager/sponsor/promoter in the form of arbitration or such other mechanism as decided on mutual terms between investors and AIF.
