Alternative Investment Funds (AIFs)
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CATEGORY OF AIF |
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| CATEGORY I | CATEGORY II | CATEGORY III | |
| Type of Investment | Startups or early stage ventures or SMEs, or such other sector which government consider socially and economically desired. | Equity and debt securities. | Listed or unlisted Securities, Hedge fund and Private Investment in Public Equity Fund (PIPE), and in complex trading strategies. |
| Registration fees | Rs. 5 Lakh | Rs. 10 Lakh | Rs. 15 Lakh |
| Class | Close ended | Open or close ended | |
| Minimum Tenure | 3 years. (Extension of 2 years after 2/3 unit holder approval) | No Minimum tenure.
(Close ended AIF get Extension of 2 years after 2/3 unit holder approval) |
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| Continued Interest by Manager/ Sponsor | Lower of following:
a) 2.5% of corpus . b) 5 Crore. |
Lower of following: a) 5% of corpus . b) 10 Crore. |
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| Limit | Invest upto 25%.
(Large value fund for accredited investor* may invest < 50% of investable fund*) |
Invest upto 10% of net assets value in Listed equity and upto 10% of investable fund in unlisted securities.(for accredited investor limit will be increase upto 20% respectively) | |
| Minimum Corpus & Investor | minimum corpus fund of 20 Crores and maximum number of investors 1000 | ||
- “investible funds” means corpus of the scheme of Alternative Investment Fund net of expenditure for administration and management of the fund estimated for the tenure of the fund.
- “accredited investor” means any person who is granted a certificate of accreditation by an accreditation
RECENT PENALTY IMPOSED BY SEBI ON INDGROWTH CAPITAL FUND I (category III) – FACTS OF THE CASE
- Reported the incorrect amount of investable funds in quarterly reports
- Investment of more than 10% of investable fund in investee company (Urgo Capital Limited).
- SEBI imposed penalty of 10 lakh u/s 15EA. SEBI ORDER : CLICK HERE
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