Alternate Investment Funds (AIFs) in India offer a diverse range of investment opportunities beyond traditional assets like stocks, bonds, and cash. These privately pooled investment vehicles are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012/SEBI (AIF) Regulations, 2012.
Alternative Investment Fund/(AIF) means any fund established or incorporated in India in the form;
|
|
| Which is- | |
| A privately pooled investment vehicle not covered in;
1. SEBI (Mutual Funds) Regulations 2. SEBI (Collective Investment Scheme) Regulations, 1999 3. Any other SEBI regulations, which regulate fund management activities. |
collects funds from investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors |
Following are not considered AIF under SEBI (AIF) Regulations, 2012
| Family Trusts | set up for the benefit of ‘relatives’ as defined Companies Act, 2013 |
| ESOP Trusts | set up under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 or as permitted under Companies Act, 2013 |
| Employee welfare trusts or gratuity trusts | set up for the benefit of employees |
| ’Holding Companies’ | as defined under section 2(46)of Companies Act, 2013 |
| Other special purpose vehicles | not established by fund managers, including securitization trusts, regulated under a specific regulatory framework |
| Funds managed by securitisation company or reconstruction company | which is registered with the RBI under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 |
| AND any such pool of funds which is directly regulated by any other regulator in India. | |
Categories of AIF
| Category I AIF
Invests in-
Including; Other sectors/area s which the government or regulators consider as socially or economically desirable. |
shall include-
and such other Alternative Investment Funds as may be specified |
| Category III AIF
Employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives |
shall include-
And for which no specific incentives or concessions are given by the government/any other Regulator. |
| Category II AIF
Which is not category I and II And does not undertake leverage or borrowing other than as permitted in these regulations |
shall include-
for which no specific incentives or concessions are given by the government or any other Regulator. |
Checklist for admission of securities with depository/issuance of ISIN
- Application for admission of securities i.e. Part I Issuer Details and Part II Security Details
- Certified true copy of Board resolution- company/Trust resolution-Trust/Meeting of the designated partners-LLP, depending upon the form of an AIF incorporation
- Copy of SEBI Registration Certificate
- Copy of Private Placement Memorandum (PPM)
- Confirmation Letter from RTA for their appointment
- Tripartite agreement to be executed between AIF, RTA and Depository
- Payment of Fee to Depository
All the required documents to be signed by the authorised person digitally. The formats of the application form and supporting documents are provided by the depository themselves. However, the applicant should contact their RTA for their assistance for preparation and submission of the application.
The RTA connect with the depository on behalf of their client/applicant and provide the necessary guidance to comply with the requirements.
The details required in the part I and part II of admission form should be provided to the RTA at once to avoid the unnecessary delay. The details required in this format can be summarised as;
Part I – Issuer Details – Alternative Investment Fund (AIF)
- Name of the AIF/Trust
- Old name(s) of the AIF in case AIF has previously changed its name
- General Information about AIF/Trust
- Select Legal form of AIF
- Select Categories of AIF
- Registered office address of Issuer
- Correspondence address, if different than Registered office address
- Billing address
- Details of entities associated with AIF ( Trustee/ Investment Manager/Sponsor)
- Contact details of Key Management Personnel of the AIF
- Contact details of Operating Personnel of the AIF
- Details for Invoicing
- Details of Board of Directors/Trustees/Designated Partners
- Any other information the applicant may wish to furnish
Part-II Security Details – Alternative Investment Fund (AIF)
- Name of the AIF/Trust
- Please select Category of AIF
- Security Details:
| Sr. No. | Particulars | Details |
| 1. | Name of the Scheme | |
| 2. A | Series (if any) | |
| 2. B | Class (if any) | |
| 2. C | Sub-Class (if any) | |
| 3. | Face Value (in Rs.) (per security) | |
| 4. | Paid up Value (in Rs.) (per security) | |
| 5. | Type of Scheme (Open ended/Closed ended, Any other) | |
| 6. | Allotment Date/Date of Initial Closing | |
| 7. | Redemption Date (for closed ended scheme) | |
| 8. | Term/Tenure of the instrument at the time of Issuance | ____ Years, ____ Months, ____ Days |
| 9. | Units in Decimal (Yes/No) | |
| 10. | Issue Size (in Rs.) |
- Status of Listing/ if Listed, name of stock exchange/s
- Details of Registrar & Transfer Agent (R&T Agent)/In-house Registry division
- Please select Whether the AIF has in-house registry division or the AIF will appoint a SEBI Registered R&T Agent
- Please specify type of connectivity with the R&T Agent
- Address where Depository Participants must send physical dematerialisation requests
- Payment of fee to depository; Joining Fee
- Unlisted Securities: Rs. 15000/-
- Listing Securities: Rs. 20000/-
Annual Custody Fee (Rs. 11 per folio, subject to minimum)
| Nominal Value of securities admitted (Rs.) | Amount (Rs.) |
| Upto Rs. 2.5 crore
(only for unlisted securities) |
5000/- |
| Upto 5 crore | 9000/- |
| Above 5 crore and upto 10 crore | 22500/- |
| Above 10 crore and upto 20 crore | 45000/- |
| Above 20 crore | 75000/- |
After making fee payment and reporting of the same, the depository provide a specific identity/ISIN.
References.
1. SEBI Website/www.sebi.gov.in
2. SEBI AIF FAQs
3. NSDL Website/nsdl.co.in
4. MCA Website/www.mca.gov.in
5. Meta AI/WhatsApp Meta AI
Note: Readers are advised to go through the original content of the act/regulations/circular/websites/references.
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