In the context of aifs, a fund of fund is an aif which invest in another aif. To usher in more transparency, the capital market regulatorsecurities and exchange board of india sebihas revised certain guidelines for alternative investment funds, including. Securities and exchange board of india alternative. However, from a regulatory viewpoint, the glare from the regulator to the alternative investments space has been at its peak. Fastlegal f153154, time square, central spine, vidhyadhar nagar, jaipur302039. Alternative investment funds in india vinod kothari consultants. Sebi registered alternative investment funds count.
To promote the development of alternative investment industry in india and be a representative voice for all the sebi registered alternative investment funds we hope to achieve it through. Sebi allows alternative investment funds in real estate, private equity investing hidden dec 20, 2014 19. Integration of financial markets and capital markets. Aifs can be set up in india by submitting form a provided in the sebi alternative investment funds regulations, 2012. The securities and exchange board of india sebi has notified the sebi alternative investment funds regulations, 2012 aif regulations vide a press release dated may 21, 2012. Securities and exchange board of india is made for protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. Alternative investment fund or aif means any fund established or incorporated in india which is a privately pooled investment vehicle which collects funds from. Based on a structure similar to mfs, alternative investment funds pool together funds from investors and issues units to them. Sebi revises guidelines for alternative investment funds. Sebi alternative investment funds regulations 2012faq. Gk, general studies, optional notes for upsc, ias, banking, civil services. Sebi sebi alternative investment funds regulations. List of sebi registered alternative investment firms in.
Innovative structures varied from the traditional blindpool model are increasingly being seen. Sebi provisions relating to alternative investment funds. On february 5, 2020, the securities and exchange board of india sebi issued a circular circular introducing significant changes to the existing legal regime concerning. Role of sebi genesis of alternative investments market regulation regulations prevalent in alternative investment market key considerations for applicants under aif regulations. The aif regulations will replace the sebi venture capital funds. Alternate investments scenario in india in 2012, securities and exchange board of india sebi stepped forward. The sebi alternative investment funds regulations, 2012, allow for extension of the tenure of a scheme upto two years subject to approval by 23rds of. Three categories of alternative investment funds have been defined by sebi, as opposed to the nine categories originally proposed in august 2011, distinguished on the basis of the. A manager to an alternative investment fund aif must now contend with greater supervision and. Sebi issues circular for alternative investment funds. Application under form a with application fee of rs. Securities and exchange board of india alternative investment funds regulations, 2012 also called aif regulations are a set of regulations introduced by securities and exchange board of. For full particulars of laws governing the alternative investment. Alternative investment fund by way of a written contract or any such document as on a particular date.
With the identification of the benefits of venture capital. Accordingly, sebi has released a concept paper in august 2011 followed by issuing sebi alternative investment funds regulations herein after referred as aif regulations in may. An aif under the sebi alternative investment funds regulations, 2012 can be established or incorporated in the form of a trust or a company or a limited liability partnership. How are alternative investments faring in india in recent.
Back home, in 2015, sebi had constituted a standing committee called the alternative investment policy advisory committee aipac under the chairmanship of mr. Setting up of an alternative investment fund in india researchgate. Markets regulator sebi has allowed as many as 235 entities to set aifs, pooledin investment vehicles for real estate, private equity and hedge funds, over a. The securities exchange board of india sebi vide its notification no.
Indian regulator releases new alternative investment funds regulations. Sebi alternative investment funds regulations, 2012. Indian regulator releases new aif regulations eurekahedge. An aif can be in form of a company llp body corporate trust. An analysis of the sebi alternative investment funds regulation 2012 divyanshu gupta and nikhil cherian1 abstract the. Comparison with mutual funds alternative investment fund aif mutual fund mf continuing interest managersponsor shall have a continuing interest of not less than 2.
Sebi has detailed out the prudential limits in sector. Alternative investment fund as defined under the sebi alternative investment. Crore, a sebi registered custodian will have to be appointed by the aif. Most of the alternative investment funds raise capital from high net worth investors hnis with a view to investing in accordance with a defined investment policy for the. Sebi alternative investment funds regulations, 2012 last amended on march 6, 2017. Sebi allows alternative investment funds in real estate. Sebis decision late last year to allow alternative investment funds aifs to operate from international finance services centre ifsc, gift city is an effort to bring the aif. Circular sebihoimddf1cirp202058 march 30, 2020 all. Alternative investment funds in india aif altsmart. The securities and exchange board of india had issued the sebi alternative investment funds regulations, 2012 which has broadened the scope of sebi to. Aif does not include funds covered under the sebi mutual funds regulations, 1996, sebi collective investment schemes regulations, 1999 or any other regulations of the. A manager to an alternative investment fund aif must now contend with greater supervision and accountability to both.
Majority of funds are in the form on infrastructure and venture capital funds infrastructure fund 69% social venture fund 7% venture capital fund 22% sme fund 2% categorywise share. These regulations may be called the securities and exchange board of india alternative investment funds amendment regulations, 2019. These faqs are prepared with a view to guide market participants on sebi alternative investment funds regulations, 2012 aif regulations. Funds, hedge funds, fund of funds, fund administrators and many others.
Alternative investment funds aif are registered under securities and exchange board of india sebi guidelines and are categorized based on their. The securities and exchange board of india sebi has issued the securities and exchange board of india alternative investment funds regulations, 2012, for regulating the activities of. Alternative investment funds before the introduction of the sebi alternative investment funds regulations, 2012 there were various funds which were operating unregulated. These funds can be established or incorporated in the. Alternative investment funds aifs on 21 may 2012, indias capital market regulator, securities and exchange board of india sebi, notified the alternative investment funds aif. Alternate investments scenario in india in 2012, securities and. Samvitti capital is the sponsor and investment manager to the following category iii aif funds formed under the securities and exchange board of india alternative investment fund. An aif under the sebi alternative investment funds. The need for alternative investment funds aifs in india was boosted with the surge in venture capital investments. Moreover, the number of alternative investment funds aifs registered with sebi have increased by 50% from june 30, 2016, to september 30, 2017, reaching 374 funds.
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