Process of Alternative Investment Fund Registration in India – Step by step Guide

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Every investor who is desiring of investing funds in India must get the concept of the Alternative Investment Fund firstly. The idea of the Alternative Investment Fund (AIF) is changing very popular and is profitable to the public at large. Further, Alternative Investment Fund Registration helps in rendering better returns to the investors. It is regulated under Regulation 2 (1) (b) SEBI (Alternative Investment Funds) Regulation, 2012.

How to get registered as an Alternative Investment Fund

The process of AIF Registration in India is described by the SEBI (Securities and Exchange Board of India) by a press release over their website[1]. Here are the steps to get registered as an investment fund:

  1. The Candidate for the award of registration as an Alternative Investment Fund under SEBI (Alternative Investment Funds) Regulations, 2012 should make an application to SEBI in Form A as provided in the Guidance along with all the required documents.
  2. Generally, on receipt of Application, the applicant will receive a reply from SEBI within 21 working days. The time is taken for registration, however, it depends on how fast the requirements are complied with by the applicant.
  3. The applicant is advised to go through the SEBI (Alternative Investment Funds) Regulations, 2012 for checking the eligibility criteria and such other details which may help expedite the registration process.
  4. The applicant must mention in the covering letter as to whether: a. It is registered with SEBI as a Venture Capital Fund. If yes, provide details. b. It has been undertaking the activities of an AIF prior to such an application. If yes, provide details. c. It is applying for registration of a new fund.
  5. As an integral part of the registration process, the applicant will submit the following a. Form A appropriately filled, numbered, duly signed and stamped. b. Application fees of Rs.1,00,000/- by way of bank draft in favor of “The Securities and Exchange Board of India”, payable at Mumbai.
  6. The applicant shall also make an online application in terms of the guidelines as prescribed by SEBI from time to time.

Eligibility criteria for AIF Registration

Following measures needs to be fulfilled for registration of Alternative Investment Fund:

  • An applicant or entity is prohibited by its memorandum and articles of association from inviting the public to subscribe to its securities.
  • The maximum number of investors could be 1000.
  • If the applicant is a trust, then the applicant has to furnish the trust deed duly registered under provisions of the Registration Act, 1908.
  • In case, the applicant is an LLP, then a partnership deed duly filed with the Registrar under the Limited Liability Partnership Act, 2008 has to be furnished.
  • The investor must be an Indian or NRI.

See Our Recommendation: Alternative Investment Funds India – A Fund of new opportunities.

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