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Struggling with complex alternative investment fund compliance? Partner with Enterslice, India’s most reliable AIF compliance advisory firm, ensuring seamless adherence to SEBI regulations, periodic reporting norms, investor disclosures, and audit requirements.
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If you are operating an alternative investment fund in India, complying with SEBIโs AIF regulations is essential to ensure smooth fund operations and investor confidence. SEBI AIF compliance refers to the set of regulatory, reporting, disclosure, and governance requirements that every category I, II, and III AIF must follow under SEBI (Alternative Investment Funds) Regulations, 2012.
Enterslice is Indiaโs No. 1 AIF compliance advisory platform. Through our AIF compliance services, we ensure that fund managers adhere to rules related to fund investment limits, risk management, valuation norms, and periodic reporting to SEBI. Compliance with AIF deadlines for certifications, audits, and reports ensures ongoing regulatory adherence with certain obligations.
Ensures Adherence to SEBI AIF Regulations, 2012
Strengthens Investor Confidence and Transparency
Simplifies Reporting, Valuation, and Governance Requirements
Enables Smooth Fund Registration and Ongoing Operations
Helps Reduce Compliance Burden up to 40%
Opens the Door for High Returns
Let our experts manage your AIF compliance, SEBI reporting, and regulatory filings with accuracy and efficiency in India.
According to SEBI (Alternative Investment Funds) Regulations, 2012, there exist different compliance requirements for each category of AIF in India. Have a look at the following AIF compliance requirements, as discussed below:
Alternative investment funds must file various reports with SEBI on a regular basis. However, the frequency and type of reports vary by AIF category.
Alternative investment funds must comply with various regulations related to their investments, disclosures, and risk management.
AIFs must appoint a trustee, manager, independent valuer, auditor, and compliance officer, who ensure proper oversight, conflict-of-interest policies and internal controls.
AIFs must comply with the Placement Memorandum (PPM) guidelines, including conducting annual PPM audits and timely disclosure of material changes, fees, expenses, and risk factors.
All AIFs must conduct independent valuations at SEBI-defined intervals and disclose accurate NAVs & performance reports to investors.
Any change in manager, sponsor, KMP, fund strategy, or control must be promptly disclosed to SEBI along with supporting documents.
AIFs must comply with applicable tax regulations, correctly deduct TDS, and maintain compliance with fund-level taxation rules.
All AIFs must comply with SEBI-regulated norms on custody arrangements, investor documentation, and proper record-keeping.
AIFs, especially category III funds, must maintain a robust risk management system covering market, liquidity, operational, and leverage risks.
The importance of SEBI AIF compliance is as discussed below:
By offering credit to underserved markets, your NBFCs promote financial inclusion and contribute to the country's economic growth.
SEBI AIF compliance promotes clear disclosures, periodic reporting, audited financials, and valuation accuracy, thereby enabling investors to make informed decisions.
SEBI AIF compliance strengthens investorsโ confidence and trust by ensuring that the fund managers follow ethical practices, maintain proper governance, and adhere to SEBI norms.
SEBI AIF compliance helps identify, manage, and reduce financial, operational, and compliance risks, especially in complex or leveraged fund strategies.
Compliance with SEBI AIF norms helps prevent regulatory fines, fund suspensions, or the cancellation of AIF registrations due to non-compliance.
Compliance with SEBI AIF regulations helps maintain discipline within the alternative investment ecosystem, thereby contributing to a fair, transparent, and stable securities market.
Maintaining alternative investment fund compliance with SEBI requires adherence to the following steps, as discussed below:
The first step is to identify regulatory gaps and appropriate remediation actions by reviewing the fund structure, documents, and SEBI category requirements.
The next step is to establish custodian, trustee, and manager roles by implementing the AML, KYC, and risk management framework in India.
The next step is to prepare the SEBI-mandated compliance calendar, comprising quarterly, annual, valuation, and investor reporting timelines to avoid non-compliance.
The next step is to submit quarterly filings, activity reports, annual certifications, and to notify SEBI of any operational or structural changes.
Further, it is mandatory to conduct SEBI-compliant valuations, disclose NAVs, and provide periodic performance & risk reports to investors.
The last step requires performing statutory audits and tracking SEBI circulars to update policies and maintain ongoing compliance in India.
The scope of an alternative investment fund compliance checklist extends to include the following:
Compliance with SEBI registration requirements
Obtain permanent account numbe
Appointment of compliance officer
Establish integral governance documents
Verify KYC, AML, and investor accreditation status
Adhere to PPM and other fund documents
Ensure mitigation of potential conflicts of interest
Conduct investment valuation at least every 6 months
Comply with Stewardship Code principles for investments
Provide investors with regular updates
Conduct an annual audit of compliance with the terms of the PPM
Appoint a qualified auditor to conduct an annual financial review
Ensure compliance with income tax returns and withholding tax requirements
Report utilization of overseas investment limits to SEBI
Promote disclosure of material events
Save 40%+ time on compliance. Stay audit-ready year-round and avoid penalties.
AIFs and their managers, as SEBI-registered intermediaries, must comply with the SEBI (Intermediaries) Regulations, 2008, as well as all circulars and guidelines issued from time to time. However, compliance with circulars and guidelines includes KYC requirements, anti-money laundering requirements, and the outsourcing of activities, as and when issued by SEBI.
Have a look at the key AIF compliance obligations of SEBI-registered intermediaries, as discussed below:
It includes a system in place to handle investor grievances, and a regulatory report on grievances must be uploaded to the SEBI-specified website.
SEBI-registered intermediaries must comply with the KYC and AML policy framework and report suspicious transactions to the appropriate authorities, such as the Financial Intelligence Unit (FIU).
As defined under SEBI (Intermediaries) Regulations, the registered intermediaries must appoint a compliance officer to oversee compliance with all SEBI guidelines and circulars.
SEBI expects AIFs to implement data security, cybersecurity controls, and incident-reporting mechanisms to protect sensitive investor information.
AIFs face key difficulties and significant alternative investment fund compliance challenges, as discussed below:
Talk to Enterslice consultants, and let us help you overcome the challenges with minimum effort.
The penalties for any non-compliance with SEBI rules and regulations result in serious consequences as discussed below:
The key details of AIF category compliance comparison among categories I, II and III are as discussed below:
As a consulting firm, we ensure compliance with SEBI AIF regulations for fund structuring, reporting, and investor onboarding. Partner Enterslice to simplify your journey for a compliant AIF in India. Hereโs why connecting with us is the right choice for SEBI AIF compliance management in India:
AIF compliance refers to the process of ensuring compliance with the SEBI (Alternative Investment Fund) Regulations, 2012. This further includes obtaining SEBI registration, regular reporting, investor due diligence, managing capital investments, conducting audits, and adhering to the stewardship code for listed equity investments.
AIF, which stands for Alternative Investment Fund, is a privately pooled investment vehicle that allows capital to be collected from accredited investors to invest in non-traditional assets such as private equity, venture capital, hedge funds, and real estate.
Yes, the AIFs in India are primarily regulated by the Securities and Exchange Board of India (SEBI). However, the Reserve Bank of India (RBI) regulates investments in AIF by its own regulated entities, such as banks and non-banking financial companies.
Anyone who falls under the category of sophisticated investors, including Indian residents, NRIs, and foreign nationals, is eligible to invest in an alternative investment fund.
SEBI AIF compliance services offered under our guidance include assistance with initial consultations, drafting legal documents and PPMs, and ongoing support for regulatory filings, investor reporting, and audits.
As of September 2025, there are 1550 SEBI-registered intermediaries acting as AIFs in India. However, the AIF industry has experienced significant growth with commitments surging to Rs. 13.49 trillion in the fiscal year 2024-25.
The maximum number of investors in an AIF is 1000, except for angel investors, who are limited to 49.
A designated employee or director of the AIFโs manager is considered the responsible compliance officer for monitoring compliance with applicable laws and regulations.
The maximum limit for overseas AIF investment shall not exceed 25% of the scheme's investible funds, subject to an overall limit of USD 500 million.
The AIFs in India ensure compliance with additional risk management requirements, including comprehensive risk management, a strong and independent compliance function, record-keeping, and disclosure of conflicts of interest.
Overseas reporting by an alternative investment fund refers to the mandatory disclosures and filings required for investments in the securities of companies incorporated outside India.
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-- Testimonials
โWe chose Enterslice for our AIF setup and couldnโt be happier. They guided us through fund structuring, documentation and SEBI compliance with clarity. Professional, transparent and genuinely investor-ready. Excellent service!โ
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