Alternative Investment Fund (AIF) Registration is a mandatory legal process governed by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012. Registration is a prerequisite for any entity intending to pool funds privately and invest them according to a defined alternative investment strategy. AIF registration ensures regulatory oversight, investor protection, transparency, and orderly development of the alternative investment ecosystem in India.
AIF Registration refers to the formal approval granted by SEBI allowing a fund to operate as an Alternative Investment Fund in India. Through registration, SEBI classifies the fund into Category I, II, or III, depending upon its investment objective and risk profile. Only upon receiving the Certificate of Registration can an AIF lawfully raise funds, make investments, and undertake fund management activities.
AIF registration provides legal recognition to the fund structure, defines permissible investment activities, and subjects the fund, sponsor, and manager to continuous regulatory compliance and reporting obligations.
Any entity intending to:
must obtain AIF registration from SEBI before soliciting or accepting investments.
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An AIF may be established in any of the following forms:
Sponsor:
Manager:
Trustee (if structured as a trust):
Development-Oriented Funds
Private Capital Funds
Trading and High-Risk Strategy Funds
Application Form (Form A).
➤ Decide category, structure, and investment strategy.
➤ Draft trust deed and fund documents.
➤ Detailed disclosure of investment strategy, risks, fees, governance, and exit.
➤ Filing through SEBI Intermediary Portal.
➤ Submission of Form A and documents.
➤ SEBI may seek additional information or clarifications.
➤ Issuance of Certificate of Registration upon satisfaction.
AIF Registration is the foundation of operating an Alternative Investment Fund in India. It ensures regulatory discipline, investor protection, and market integrity. Proper registration, coupled with ongoing compliance, is critical for the sustainable and lawful functioning of any alternative investment fund.
Yes. Registration with the Securities and Exchange Board of India (SEBI) is compulsory for any entity intending to operate as an Alternative Investment Fund (AIF). No AIF can lawfully raise or manage funds without obtaining prior SEBI approval under the SEBI (AIF) Regulations, 2012.
No. Raising funds or accepting commitments before SEBI registration is strictly prohibited. Any such activity may be treated as an unauthorised collective investment scheme and attract regulatory action.
Category II AIFs are the most commonly registered as they include private equity funds, debt funds, real estate funds, and infrastructure funds, and are not subject to the leverage restrictions applicable to Category I or III.
Trusts are preferred because they provide tax pass-through benefits, operational flexibility, ease of governance, and investor confidence. They also align well with SEBI’s regulatory framework for fund management.
Yes. Foreign investors, including NRIs and FPIs, can invest in AIFs, subject to FEMA guidelines, SEBI regulations, and sectoral caps. Compliance with KYC, AML, and reporting requirements is mandatory.
Yes. An AIF must have a minimum corpus of ₹20 crore, while Angel Funds require ₹10 crore. Additionally, each investor must invest a minimum amount as prescribed by SEBI (generally ₹1 crore).
Non-registration may result in penalties, refund of funds to investors, cancellation of operations, blacklisting, and enforcement proceedings by SEBI, including monetary and non-monetary sanctions.
No. AIF registration is entity-specific and non-transferable. Any change in sponsor, manager, or control requires prior SEBI approval and fresh compliance disclosures.
No. SEBI only regulates the registration, disclosures, and compliance framework. It does not guarantee returns or protect investors from investment risks.
Yes. An AIF may change its investment strategy with the consent of the required majority of investors and after making appropriate disclosures to SEBI and investors, as per regulatory norms.
