Based on a structure similar to mfs, alternative investment funds pool. Back home, in 2015, sebi had constituted a standing committee called the alternative investment policy advisory committee aipac under the chairmanship of mr. Indian association of alternative investment funds iaaif. Integration of financial markets and capital markets. 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. Alternative investment fund by way of a written contract or any such document as on a particular date. The securities and exchange board of india had issued the sebi alternative investment funds regulations, 2012 which has broadened the scope of sebi to. Sebi allows alternative investment funds in real estate, private equity investing hidden dec 20, 2014 19.
Sebi alternative investment funds regulations, 2012 last amended on may 10, 2019. In the context of aifs, a fund of fund is an aif which invest in another aif. Alternate investments scenario in india in 2012, securities and exchange board of india sebi stepped forward. 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. These funds can be established or incorporated in the. An analysis of the sebi alternative investment funds regulation 2012 divyanshu gupta and nikhil cherian1 abstract the. Alternative investment fund as defined under the sebi alternative investment.
An aif under the sebi alternative investment funds. 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. Funds, hedge funds, fund of funds, fund administrators and many others. 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.
Taking cue from yoda, the adjudication officer of securities and exchange board of india sebi has ordained do or do not, there is no try. Innovative structures varied from the traditional blindpool model are increasingly being seen. 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. Sebi allows alternative investment funds in real estate. As per the sebi regulations, the amount invested in debt fund cannot be utilised for the purpose of giving loans, as alternative investment fund is a privately pooled investment vehicle. Based on a structure similar to mfs, alternative investment funds pool together funds from investors and issues units to them. 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.
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. With the identification of the benefits of venture capital. An aif can be in form of a company llp body corporate trust. Comparison with mutual funds alternative investment fund aif mutual fund mf continuing interest managersponsor shall have a continuing interest of not less than 2. Gk, general studies, optional notes for upsc, ias, banking, civil services. 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.
Frequently asked questions faqs sebi alternative investment funds regulations, 2012 disclaimer. Sebi revises guidelines for alternative investment funds. Alternative investment funds in india vinod kothari consultants. Indian regulator releases new aif regulations eurekahedge. The securities exchange board of india sebi vide its notification no. 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. 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. Sebi provisions relating to alternative investment funds. 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. Sebi alternative investment funds regulations, 2012. Alternative investment funds before the introduction of the sebi alternative investment funds regulations, 2012 there were various funds which were operating unregulated.
Sebi issues another set guidelines addressing various aspects to ensure greater compliance by aifs article sebi guidelines for alternative investment funds aifs i. Indian regulator releases new alternative investment funds regulations. Aifs can be set up in india by submitting form a provided in the sebi alternative investment funds regulations, 2012. Securities and exchange board of india alternative. 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. The aif regulations will replace the sebi venture capital funds. There are total 374 aifs registered under sebi, as per the records available on. To usher in more transparency, the capital market regulatorsecurities and exchange board of india sebihas revised certain guidelines for alternative investment funds, including.
Circular sebihoimddf1cirp202058 march 30, 2020 all. Sebi has detailed out the prudential limits in sector. Role of sebi genesis of alternative investments market regulation regulations prevalent in alternative investment market key considerations for applicants under aif regulations. 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. The scope of alternative investment in india as more. Sebi sebi alternative investment funds regulations. 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. Sebi alternative investment funds regulations 2012faq. Alternative investment fund or aif means any fund established or incorporated in india which is a privately pooled investment vehicle which collects funds from. Setting up of an alternative investment fund in india researchgate. 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.
A manager to an alternative investment fund aif must now contend with greater supervision and accountability to both. Alternative investment funds in india aif altsmart. How are alternative investments faring in india in recent. Sebi registered alternative investment funds count. 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. 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. 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. Alternate investments scenario in india in 2012, securities and. However, from a regulatory viewpoint, the glare from the regulator to the alternative investments space has been at its peak. T he securities and exchange board of india sebi on 26 november 2018 issued a circular outlining the operating guidelines for alternative investment funds aifs in the international. Sebi issues circular for alternative investment funds. Alternative investment funds are the investments which do not happen via the traditional modes of investment such as stocks, bonds, cash, property etc. Sebi alternative investment funds regulations, 2012 last amended on march 6, 2017.
For full particulars of laws governing the alternative investment. The need for alternative investment funds aifs in india was boosted with the surge in venture capital investments. A manager to an alternative investment fund aif must now contend with greater supervision and. 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. Alternative investment funds aif are registered under securities and exchange board of india sebi guidelines and are categorized based on their. Fastlegal f153154, time square, central spine, vidhyadhar nagar, jaipur302039. Crore, a sebi registered custodian will have to be appointed by the aif. Application under form a with application fee of rs.
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