SEBI AIF Registration

Understanding AIFs in India

End-to-end support for SEBI AIF registration (Category I, II, and III). We handle fund documentation, PPM drafting, and regulatory filing.

Establish a Private Equity, Venture Capital, or Hedge Fund in India by registering as an Alternative Investment Fund (AIF) with SEBI.

Launch your institutional fund. Register with SEBI to pool capital from sophisticated investors for Private Equity, Real Estate, or Hedge Funds.

Alternative Investment Fund (AIF) means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy.

AIFs are distinct from Mutual Funds and are tailored for High Net-worth Individuals (HNIs) and Institutions. They are governed by the SEBI (Alternative Investment Funds) Regulations, 2012, which provide a robust framework for fund management, transparency, and investor protection.

QuickTaxperts provides professional guidance in selecting the right category and managing the rigorous registration process, including the drafting of the Private Placement Memorandum (PPM).

• Category: Financial Services
• Minimum investment of ₹1 Crore per investor (₹25 Lakhs for employees).
• Closed-ended or open-ended structures depending on the category.
• Taxation benefits depending on the fund category and structure.
• Access to diverse assets: Startup equity, distressed debt, or complex derivatives.
• Mandatory for pooling private capital for investing
• Registration under SEBI (AIF) Regulations, 2012
• Choice of Category I, II, or III based on strategy
• Requires professional investment management setup

AIF Categories Comparison

Choose the right structure for your strategy.

• Focus - VC, SME, Social, Infra - PE, Real Estate, Debt - Hedge Funds, Trading
• Leverage - Not permitted - Not permitted - Permitted
• Structure - Closed-ended - Closed-ended - Open or Closed-ended
• Example - Startup Funds - Private Equity Funds - Hedge Funds

AIF Registration Criteria

Requirements for the Sponsor and Manager.

• Legal Structure: Can be formed as a Trust, LLP, Company, or Body Corporate.
• Sponsor/Manager: Must have adequate professional qualification and infrastructure.
• Corpus Size: Minimum corpus of ₹20 Crores (₹10 Crores for Angel Funds).
• Skin in the Game: Sponsor/Manager must contribute 2.5% to 5% of the corpus (subject to limits).

Documents required

Document requirements vary by entity type, state, premises, and authority. These are the usual groups we verify before submission.

• Key Deliverables: Private Placement Memorandum (PPM).; Trust Deed / LLP Agreement / MOA & AOA.; Investment Management Agreement.; Contribution Agreement (between Sponsor and Fund).; KYC of Directors/Partners of Sponsor and Manager.; Audited Financials of Sponsor and Manager.

Process and timeline

• Category Selection: Deciding between Cat I, II, or III based on the investment objective.
• Entity Formation: Setting up the Trust/LLP and the Investment Manager entity.
• PPM Drafting: Preparing the comprehensive offer document for investors.
• SEBI Filing: Submitting Form A on the SIRE portal with all legal documents.
• Registration: Obtaining the SEBI AIF Registration Certificate after due diligence.

Expert review

SEBI AIF Registration content is reviewed by QuickTaxperts Investment Banking Team, AIF Compliance Specialists.

• Checklist-led review
• Document pre-verification
• Authority-specific next steps

Frequently asked questions

These quick answers cover common planning questions before you request a checklist or quote.

• What is the minimum corpus for an AIF?: Each scheme of an AIF (other than Angel Funds) must have a minimum corpus of ₹20 Crores.
• What is the minimum investment for an investor?: The minimum investment is ₹1 Crore. For employees/directors of the AIF, it is ₹25 Lakhs.
• Can a foreign investor invest in an AIF?: Yes, AIFs can raise funds from both Indian and foreign investors, subject to FEMA and RBI guidelines.
• What is Category II AIF?: It is the most common category, covering Private Equity funds, Debt funds, and Real Estate funds that do not undertake leverage.
• Is a PPM mandatory?: Yes, every AIF must provide a Private Placement Memorandum (PPM) containing all material information to investors.
• Can an AIF be open-ended?: Only Category III AIFs can be open-ended. Category I and II must be closed-ended with a minimum tenure of 3 years.
• What is the Sponsor's contribution?: The Sponsor or Manager must have a 'skin in the game' of at least 2.5% of the corpus or ₹5 Crores (whichever is lower) for Cat I and II.
• How long does registration take?: The SEBI registration process usually takes 3 to 5 months.