Inventory Control Service

Before filing the application for AIF registration, fund managers must prepare the necessary AIF documents, including the Private Placement Memorandum (PPM), Limited Partnership Agreement (LPA), Trust Deed, or any other applicable legal documents. These documents outline the investment objectives, strategies, risk factors, terms, and conditions of the AIF.

The AIF documents should be drafted carefully, ensuring compliance with SEBI regulations and addressing the specific needs of the target investors. It is advisable to engage legal professionals with expertise in AIF regulations to assist in the preparation and review of these documents.

Submission of Application to SEBI

Once the AIF documents are in order, the next step is to submit the application for AIF registration to SEBI. The application should include all relevant details, such as the category and sub-category of the AIF, the investment strategy, the fund manager's background, and the proposed corpus of the AIF.

The application must be filed online through the SEBI Intermediary Portal, along with the requisite fees and supporting documents. The supporting documents may include audited financial statements, due diligence reports, consent letters from key personnel, and any other documents specified by SEBI.

Review and Approval by SEBI

Upon receiving the application, SEBI will review the documents and assess the eligibility and suitability of the AIF for registration. SEBI may seek additional information or clarifications during the review process. It is important to respond to any queries from SEBI promptly and provide the requested information to avoid delays in the approval process.

SEBI will consider various factors, including the track record of the fund manager, the investment strategy, the potential risks and returns, and the overall compliance with SEBI regulations. If SEBI is satisfied with the application, it will grant registration to the AIF and issue a certificate of registration.

5. AIF Registration Requirements

To ensure investor protection and a transparent investment environment, SEBI has outlined certain requirements for AIF registration. Let's explore the key requirements that AIFs must comply with:

Minimum Corpus Requirement

AIFs are required to have a minimum corpus as prescribed by SEBI, depending on the category and sub-category of the AIF. Category I AIFs, including Venture Capital Funds and Angel Funds, must have a minimum corpus of at least Rs. 20 crores, while Category II AIFs must have a minimum corpus of Rs. 10 crores.

The minimum corpus requirement ensures that AIFs have adequate resources to implement their investment strategies effectively and meet the expectations of the investors. It also acts as a safeguard against undercapitalized funds that may not have the capacity to manage investments prudently.

Investment Restrictions