The Alter-NATIVE series SEBI allows online registrations in AIFs

SEBI allows online registrations in AIFs

Existing AIFs will have to file their compliance reports online.
Team Cafemutual Aug 1, 2017

The process of getting alternative investment fund (AIF) license just got easier. SEBI has allowed fund houses and other market participants to apply for the AIF registration online.

In a circular, SEBI has said, “In a  constant  endeavor to  facilitate  ease  of  operations  in  terms  of  applying  for registration,  reporting  and  various  compliances,  SEBI  has introduced an online system for filings related to AIF. The online system can be used for application for registration, reporting and filing in terms of the provisions of AIF Regulations.”

Furthermore, all existing SEBI registered AIFs are now required to  file their compliance reports and  submit applications  for  any  request  through  the  online  system  only.  SEBI has made this online filing system for AIF operational with immediate effect.

Experts believe that although this will ease the process by doing away with the physical documentation part, it does not claim to reduce the overall time of registration. Also, there is no clause mentioned with respect to fund approval. Typically, the market regulator takes 2 to 3 months to complete the registration process.

Currently, of the 39 AMCs, only a handful of them have launched AIFs. Fund houses such as Indiabulls, Reliance, DSP Black Rock, Edelweiss, IIFL, IDFC, ICICI Prudential and HDFC are among the players who have ventured into the AIF space. A majority of them have launched category II AIFs, which are private equity funds, debt funds and fund of funds. Fund officials say that taxation is a deterrent for launching AIFs.

The budget 2017 has announced that SEBI would enable market intermediaries, which include AIFs to apply for registration online.

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