Alternative Investment Fund Registration

ALTERNATIVE INVESTMENT FUND REGISTRATION

Alternative Investment Fund registration means any fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which,

  1. Is a privately pooled investment vehicle that collects funds from investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors; and
  2. Is not covered under the:
  • SEBI (Mutual Funds) Regulations,1996,
  • SEBI (COLLECTIVE Investment Schemes) Regulations, 1999 or
  • any other regulations of the SEBI to regulate fund management activities.

Alternative Investment Fund registration

Provided that the following shall not be considered as Alternative Investment Fund: –

  1. Family Trust set up for the benefit of ‘relatives’ as defined under Companies Act, 2013;
  2. ESOP Trusts;
  3. Employee Welfare Trusts or Gratuity Trusts;
  4. Holding Companies as defined under Companies Act, 2013;
  5. Funds managed by a securitization company or reconstruction company registered with RBI;
  6. Other special purpose vehicles not established by fund managers, including securitization trusts,
  7. Any such pool of funds that are directly regulated by any other regulations.

 

Why Registration?

No entity or individual will go about as an Alternative Investment Fund except if it has gotten an certificate of registration from the SEBI.

A current asset falling inside the meaning of Alternative Investment Fund which isn’t enrolled with the SEBI might keep on working assuming that it has made an application for registration under sub-guideline (5) till the removal of such application.

Existing plans will be permitted to finish their concurred residency, such assets will not raise any new monies other than responsibilities previously made till registration is conceded under guideline 6.

Categories of Alternative Investment funds:

  • Category I: which invest in start-up and early venture or social venture or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include venture capital funds, SME Funds, social venture funds infrastructure funds, and such other Alternative Investment Funds as may be specified;
  • Category II: which does not fall into Category I and III and which does not undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted in these regulations;
  • Category III: which employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives.

 

Eligibility Criteria for Alternate Investment Fund Registration:

The eligibility models for applying for registration as Alternate Investment Fund are-

  1. The candidate, manager and sponsor are fit and legitimate people according to the models determined in Schedule II of the SEBI (Intermediaries) Regulations, 2008.
  2. The administrator of the key investment group of AIF has –
  3. a) adequate experience and something like one key professional having five years of involvement with overseeing pools of capital or exhorting, in the asset, abundance, resource, portfolio the executives or occupied with selling, purchasing and managing of protections or other monetary resources,
  4. b) At least one key professional having professional capability in bookkeeping, finance, trade, business the executives, capital market, financial aspects or
  5. c) banking from an establishment or college perceived by the Central Government or any State Government.
  6. The candidate at the hour of registration has explicitly expressed the designated financial backers, venture objective, investment style, proposed corpus, system, and proposed residency of the asset or plan.
  7. The Memorandum of Association (MoA) of an organization or the Trust Deed of a Trust or the Partnership deed of an LLP allows to carry on the movement of AIF.
  8. The candidate ought to be precluded by its MoA and Articles of Association (AoA) or Partnership Deed or Trust Deed to make a solicitation to general society for buying into its protections.
  9. In the event that the candidate is a Trust, the Trust Deed is properly enrolled under the Registration Act, 1908.
  10. On the off chance that the candidate is a LLP, it is appropriately consolidated, and the organization deed is documented with the Registrar of Firms according to the arrangements of the Limited Liability Partnership Act, 2008.
  11. On the off chance that a candidate is a body corporate, it is laid out or set up under the laws of the Central or State Legislature, and it has consent to carry on the exercises of AIF.

Documents Required For Alternate Investment Fund Registration:

The reports that are to be delivered alongside the application for registration are-

  • Certificate of Incorporation or Registration of the applicant entity.
  • Partnership Deed on account of the AIF registration is by a Partnership registered under the Limited Liability Partnership Act, 2008.
  • Original Deed of Trust in the event of the AIF registration is by a general public or trust registered under the Trusts Act, 1882.
  • Data of the directors and shareholders regarding the AIF.
  • Copy of the Placement Memorandum of the applicant entity.
  • Contact data and other data of the applicant entity.
  • Some other business data connecting with the development plans of the organization or LLP.
  • Address and specifics of the Registered Office of the applicant entity.
  • Memorandum of Association and Articles of Association of the applicant entity.

Registration Process

Stage 1: A candidate needs to make an application in a recommended design as per Form-A referenced under SEBI (AIF) Regulations 2012 and needs to pay the endorsed charges and present a similar application to SEBI alongside required records.

Stage 2: On getting an application, SEBI will check and answer the candidate inside 21 working days. Consequently, after the confirmation of archives and fulfillment of the rightness of reports, SEBI will endorse the application.

Stage 3: After certificate, the issuance of authentication of AIF registration will be trailed by accommodation of the accompanying registration expense contingent on the class of AIF:

Class I: Rs. 5 Lakhs

Class II: Rs. 10 Lakhs

Class III: Rs. 15 Lakhs

Post-Registration compliance:

  1. Once registered, the AIF should consent to the revealing necessities as indicated by

SEBI occasionally.

  1. The AIF should routinely take a look at the SEBI site for any updation/handouts/rules given from SEBI occasionally as for the AIF movement.
  2. The AIF should private to SEBI any material change in the subtleties previously outfitted to SEBI inside a sensible timeframe.

Most Asked Questions-

Que: Validity of AIF registration authentication?

  • AIF registration authentication is substantial until the organization is wound up.

Que: Which is the governing authority for (AIF) Alternative Investment Fund registration?

  • SEBI is the administering expert for AIF registration under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 which happened on May 21, 2012.

Que: What Is The Minimum Scheme Size Of An AIF?

  • The base plan size of an Alternative Investment Fund is 20 crores.

Que: What Is The Registration Fee For Alternative Investment Fund Registration?

  • The accompanying expenses would be appropriate for alternative investment fund registration:

The registration expenses according to Second Schedule of SEBI (AIF) Regulations, 2012 for every one of the categories is unique and which are as per the following –

Application expense for AIF registration under SEBI is Rs. 1 Lakh which isn’t needed for the current AIF individuals.

The re-Registration is Rs. 1 Lakh

Plot expense is Rs. 1 Lakh

After certificate, the issuance of testament of AIF registration will be trailed by accommodation of the accompanying registration charge contingent on the classification of AIF:

Classification I: Rs. 5 Lakhs

Classification II: Rs. 10 Lakhs

Classification III: Rs. 15 Lakhs

 

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