In just four years of SEBI AIF regulations coming into force, the number of AIFs has reached 235. The number of AIFs and their commitment raised continue to rise. SEBI data shows that the commitment raised by AIFs has increased by 103% from Rs. 24,873 crore in June 2015 to Rs. 50,441 crore in June 2016.
To provide guidance and clarity to existing and new players wanting to set up AIFs, SEBI has come out with a detailed FAQs on AIFs.
Here are some the important highlights from the AIF FAQs released by SEBI:
In which legal forms can an AIF be set up?
An AIF can be incorporated in the form of a trust/a company/LLP/body corporate. Most of the AIFs registered with SEBI are in trust form.
What is the application and registration fee to set up an AIF?
Entities have to pay a registration fee of Rs. 1 lakh while applying for AIF license. Here is the registration fee to set up different categories of AIFs:
|
Category |
Fee (in lakhs) |
|
Category I |
5 lakh |
|
Category II |
10 lakh |
|
Category III |
15 lakh |
|
Angel Funds |
2 lakh |
Can an AIF launch a fund/scheme of any size?
No. Each AIF (other than angel fund) should have a corpus of at least Rs. 20 crore. Angel funds should have a minimum corpus of Rs. 10 crore.
Can venture capital funds registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996 seek re-registration under SEBI (AIF) Regulations?
Venture Capital Funds (VCFs) registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996 can seek reregistration under SEBI (Alternative Investment Funds) Regulations, 2012 subject to approval of two-third of their investors by value of their investment.
As against other applications for registration as Category I - VCFs who have to pay Rs. 5 lakhs as registration fees, VCFs registered under the VCF Regulations are required to pay Rs. 1 lakh only as re-registration fees.
Is an AIF permitted to make an invitation to the public to subscribe to its securities?
No. AIFs are privately pooled investment vehicles. As an eligibility criterion for registration as an AIF, applicants are required to be prohibited by its memorandum and articles of association/trust deed/partnership deed from making an invitation or solicitation to the public to subscribe to its securities.
What is the limit specified under AIF regulations for number of investors?
No scheme of an AIF (other than angel fund) should have more than 1,000 investors. In case of an angel fund, no scheme should have more than 49 angel investors. However, an AIF cannot make invitation to the public at large to subscribe its units and can raise funds from sophisticated investors only through private placement.
What is the validity of the certificate of registration of an AIF?
The certificate of registration of an AIF is till the AIF is wound up.
Click here to read the full FAQs.
