Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
Recovery of Shares
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
Before the introduction of the SEBI (Alternative Investment Funds) Regulations, 2012 there were various funds which were operating unregulated. Such funds were not covered under any of the regulations specified by Securities and Exchange Board of India like SEBI (Mutual Funds) Regulations, 1996; SEBI (Custodian of Securities) Regulations, 1996 etc. It was only after the introduction of SEBI (Alternative Investment Funds) Regulations, 2012 that such unregulated funds were covered under the ambit of law. These regulations are also termed as AIF Regulations.
Alternative Investment Fund Regulations were introduced with a view to regularizing pooled funds not covered under any of the previous regulations in India. These regulations require such funds to be registered an operated as per these provisions. This was to cover such pooled investment funds under a legal umbrella. These funds can receive capital from Indian as well as foreign investors
As we have discussed above AIF are the funds include the pooled investment funds established in India which collect funds from sophisticated investors and invest them as per their Investment policy.
For further clarification let’s understand the legal definition of Alternative Investment Funds. Regulation 2 (b) of SEBI (ALTERNATIVE INVESTMENT FUNDS) REGULATIONS, 2012 specifies exactly what is covered under Alternative Investment Funds. As per this definition, an AIF has the following features:
As we have discussed they are privately pooled investment vehicles. Their main activity involves:
They are required to work for the benefit of their investors.
AIF regulations clearly specify the following list of entities which are not considered as Alternative Investment Fund:
Regulation 4 of SEBI (AIF) Regulations have provided the eligibility criteria for Alternative Investment Fund Registration. Such conditions are listed below:
The size of the fund/scheme of every AIF is directly dependent upon the Corpus of the AIF.
Every scheme of the Alternative Investment Fund (excluding angel fund) must have a corpus of minimum 20 Crore rupees.
On the other hand in the case of the Angel Fund, the Corpus must not be less than 10 Crore rupees.
Non-Banking Financial Companies (NBFCs) in India are now a major driving force of the country's...
The Reserve Bank of India (RBI) has taken a historic step in India's financial sector. The bank...
The financial sector is changing in the current digital era. Banking is no longer limited to ju...
The Indian financial market is diversifying and fast-changing. Making the right decision for in...
If you are an Indian seeking to live in the beautiful country of Sweden, 2025 is the right time...
Are you human?: 3 + 2 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
The Securities Exchange Board of India (SEBI) is the proactive authority responsible for making necessary amendment...
14 Aug, 2024
The Securities and Exchange Board of India (SEBI) in its recently held board meeting on 28th December, 2021 introdu...
13 Sep, 2022