No entity or person shall act as an Alternative Investment Fund (AIF) unless it has obtained a certificate of registration from the Board (Securities and Exchange Board of India).
Alternative Investment Fund shall seek registration in one of the categories mentioned hereunder:
| CATEGORY | CATEGORY I AIF | CATEGORY II AIF | CATEGORY III AIF |
| Primarily Invests in Start-up and unlisted entities etc.
Sub- categories: Venture capital funds, SME Funds, Social venture funds, infrastructure funds. |
Invests in Private Equity funds, Debt Funds for which no specific incentives or concessions are given by Government. | Primarily in securities of listed entities or unlisted investee companies Derivatives or complex structured products.
Invests in Hedge Funds i.e Derivatives. |
|
| TENURE | 3 Years + 2 year Extension | 3 Years + 2 year Extension | 3 Years + 2 year Extension in close ended |
| TYPE OF SCHEME | Close Ended | Close Ended | May be open ended or close ended |
| APPLICATION FEE | INR 1,00,000 | INR 1,00,000 | INR 1,00,000 |
| REGISTRATION FEE | INR 5,00,000
(Except Angel Funds) |
INR 10,00,000
(Except Angel Funds) |
INR 15,00,000
(Except Angel Funds) |
ELIGIBILITY CRITERIA:
- An AIF which has been granted registration under a particular category cannot change its category subsequent to registration, except with the approval of the Board.
- The memorandum of Association of a company, permits it to carry on the activity of an Alternate Investment Fund (AIF).
- The applicant is prohibited by its MOA and AOA from making an invitation to the public to subscribe to its securities.
- The AIF shall not carry on any other activity other than permitted activities.
INVESTMENT CONDITIONS AND RESTRICTIONS:
- The AIF may raise funds from any investor whether Indian, foreign or non- resident Indians by way of issue of units.
- Each scheme of the AIF shall have corpus of at least 20 crore Rupees.
- The AIF shall not accept from an Investor, an Investment of value less than 1 Crore Rupees.
- No scheme of the AIF shall have more than 1000 Investors.
- The Fund shall not solicit or collect funds except by way of Private placement by issue of information memorandum or placement memorandum.
INFORMATION/ DETAILS REQUIRED FOR APPLICATION:
- Form- A (Application for grant of certificate of Registration as AIF)
- Name and registered address, correspondence address, principal place of Business, mobile number, email id, fax number of the applicant.
- Name, email id, mobile No and email Id of the contact person.
- Date and place of Incorporation
Category under which the application is made:
- Category I AIF- Venture Capital Fund
- Category I AIF- Social Venture Fund
- Category I AIF- SME Fund
- Category I AIF- Infrastructure Fund
- Category I AIF- Other
- Category II AIF
- Category III AIF
- Details of Infrastructure for conducting activities as an AIF.
- Whether the applicant or its associates or its sponsor(s) or its Manager is/are registered with the Board, RBI or any other regulatory authority in any capacity along with the details of its registration.
- Copy of the draft Placement Memorandum.
- Write- up on the activities of the applicant.
- Shareholding pattern and Profile of the directors (Enclose self-attested ID and Address Proof of the Directors).
- Whether MOA permits carrying on the activity of an AIF (Enclose relevant extract of the MOA)
- Whether the applicant is prohibited by its MOA and AOA from making an invitation to the public to subscribe to its securities.
DETAILS OF SPONSOR(S) (Who setup the AIF and includes Promoters in case of a company):
- Name and registered address, correspondence address, principal place of Business, mobile number, email id, fax number of Sponsor.
- Name, email id, mobile No and email Id of the contact person.
- Legal status of Sponsor and date and place Incorporation of Sponsor.
- Self- attested ID and Address proof of Directors.
- Whether the Sponsor or its Directors are registered with the Board.
- Copies of the financial statement for the previous financial year.
- Whether, the sponsor has floated any AIF/Venture Capital Funds previously, which are registered with the Board. If yes, details of the same.
- Details of past experience of Sponsor(s) in advising or managing pools of capital or in fund or Asset or wealth or portfolio management or in the business of buying, selling, and dealing of securities or other financial assets.
DETAILS OF MANAGER
- Name and registered address, correspondence address, principal place of Business, mobile number, email id, fax number of the Manager(s).
- Name, email id, mobile No and email Id of the contact person.
- Legal status of the manager and date and place of Incorporation of the manager(s), (If Company).
- Self- attested ID and Address proof of Directors (if Manager is a company).
- In case Manager being a company Shareholding pattern of directors.
- Copies of the financial statement for the previous financial year.
- Brief profile of key Investment Team including experience and professional qualification.
- Whether, the Manager has managed/ advised any AIF/ Venture Capital Funds previously, which are registered with the Board. If yes, details of the same.
- Write up on the activities of the manager including past experience in advising or managing pools of capital or in fund or Asset or wealth or portfolio management or in the business of buying, selling, and dealing of securities or other financial assets.
DETAILS OF BUSINESS PLAN AND INVESTMENT STARTEGY:
1. Investment objective and Investment style/ strategy of fund.
2. The target Investors
3. The target industries/ Sectors, if any
4. Proposed Corpus
5. Proposed Fee to the Sponsor and Manager
6. Tenure of the Fund or scheme
Details of Regulatory action taken in the past, if any
OTHER INFORMATION/ DECLARATIONS:
1. Amount contributed/ proposed to be contributed by the sponsor(s)/Manager(s) as per clause (d) of Regulation 10 along with the details of the same. (Provide copies of commitment letters from the sponsor/manager).
2. Declaration that the applicant shall comply with the provisions of regulation 10 with respect to investment in the AIF.
3. Declaration that the applicant shall comply with the provisions of regulation 15 and 16 with respect to general investment conditions for the applicable category.
4. Whether the applicant, Sponsor and Manager are fit and proper person based on the criteria specified (Enclose a declaration to that effect).
SIMPLIFIED PROCESS AT THE END FOR YOUR UNDERSTANDING:
REGISTRATION UNDER SEBI
Application under FORM “A” with application Fee of Rs. 1,00,000 Get Reply within 21 days subject to Qualification After approval have to submit the Registration Fees Applicant get the certificate as an AIF
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