Alternative Investment Funds
- Definition
- Documentation
In India, alternative investment funds (AIFs) are defined in Regulation 2(1) (b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP). Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India.
Categories of Alternative Investment Funds (AIFs)
As per Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Alternative Investment Funds shall seek registration in one of the three categories
- Category I: Mainly invests in start- ups, SME's or any other sector which Govt. considers economically and socially viable.
- Category II: These include Alternative Investment Funds such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other Regulator
- Category III : Alternative Investment Funds such as hedge funds or funds which trade with a view to make short term returns or such other funds which are open ended and for which no specific incentives or concessions are given by the government or any other Regulator.
Tenure and Listing of Alternative Investment Funds / Schemes
For AIF scheme launched under Category I & II shall be close ended, the tenure shall be determined at the time of application and shall be for minimum three years.
Category III Alternative Investment Fund may be open ended or close ended.
Extension of the tenure of the close ended Alternative Investment Fund may be permitted up to two years subject to approval of two-thirds of the unit holders by value of their investment in the Alternative Investment Fund. In the absence of consent of unit holders, the Alternative Investment Fund shall fully liquidate within one year following expiration of the fund tenure or extended tenure.
Units of close ended Alternative Investment Fund may be listed on stock exchange subject to a minimum tradable lot of one crore rupees. Such listing shall be permitted only after final close of the fund or scheme. However, listing on stock Exchanges is purely voluntary.
Process and Documentation required for Listing and Trading Alternative Investment Fund on BSE
Process
A.List of documents to be submitted for seeking In-principle approval for listing units of AIF scheme
Certified true copy of the following Agreements / documents:
- Draft Information / Placement memorandum. Hard as well as soft copy.
- Investment Management Agreement. (In case of 1st Listing)
- Certification of registration of Alternative Investment Fund issued by SEBI. (In case of 1st Listing)
- Custodian Agreement. (In case of 1st Listing)
- R & T Agreement. (In case of 1st Listing)
- Trust Deed (if applicable)
- Memorandum & Articles of Association of the issuer (in case of 1st listing)
- Resolution passed by trustee in case of AIF is established as trust or Board of directors in case AIF is established as Company or by partners in case AIF is established as a Limited Liability partnership at their meeting approving listing of units of close ended AIF on the BSE Ltd.
- An undertaking from the CEO/ compliance officer that AIF is in compliance with Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 as amended and all the other applicable laws.
Click here for (Check list and Annexures)
Note:
- The Exchange reserves the right to ask for documents other than those mentioned above
Non- Refundable Processing fees as follows
| Particulars | Fees Amount |
| Per Placement Memorandum / Information Memorandum | Rs. 50,000/- |
- Goods and Service Tax (GST) is payable on the Processing fees at the applicable rate
- BSE reserves the right to revise the above fee structure
B. List of documents to be submitted for Listing of units of AIF (Post allotment of units)
Certified true copy of the following Agreements / documents:
- Letter of Application for listing of units of Scheme.
- Details of the applicant (In case of 1st Issue/Listing) and Issue Details.
- Certified True Copy of observations / comments received from SEBI on the / placement Memorandum / Scheme Information Document (SID)
- Certified true copy of the Final Placement Memorandum / Scheme Information Document (SID) (soft copy also required)
- Unitholding pattern of Unitholders of the Scheme ( As per format)
- Confirmation from the CEO / Compliance officer regarding allotment of units and the actual no. of units allotted.
- Statement of Collection details.
- Listing Agreement (In case of 1st Listing) as per SEBI LODR Regulations. (The format would be made available soon)
- Confirmation from CEO / Compliance officer regarding compliance with the provisions of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 including subsequent amendments thereof and SEBI circulars issued in this respect.
- Confirmation from NSDL and CDSL (ISIN activation)
- Confirmation from RTA on the final number of units to be allotted with NSDL, to be allotted with CDSL and to be issued under physical form.
- Undertaking from the RTA on the units considered under switches that they have debited the units from the respective schemes and credited the applicable units in this scheme(if applicable).
- Confirmation received from NSDL / CDSL for credit.
- Confirmation from RTA regarding dispatch of Certificates / Account statement/refund order.
- Annual listing fees plus Applicable Taxes
- The Exchange would reserve the right to ask for documents other than those mentioned above
BSE would have the right to add, modify, delete, revise any or all the above requirements as deem fit.
Submission of documents and fees would not amount to listing of units or grant of approval by BSE.
Click here for (Check list and Annexures)
For Listing of units of Schemes under AIF (Post allotment of units)
Non- Refundable Alternative Investment Scheme Annual Listing Fees to be paid year on year
| Sr. No. | Particulars | Fees Amount |
| 1 | Initial Listing Fees | Nil |
| 2 | Annual Listing Fee- for tenure of the scheme | Payable per annum or part thereof |
| A | Issue size up to Rs.250 Crores | Rs. 2,50,000/- |
| B | Above Rs.250 Crores. and up to Rs.500 Crores. | Rs. 3,75,000/- |
| C | Above Rs.500 Crores. and up to Rs.750 Crores, | Rs. 5,00,000/- |
| D | Above Rs.750 Crores and up to Rs.1000 Crores | Rs. 7,50,000/- |
| E | Above Rs 1000 Crores | Rs. 10,00,000/- |
Year-end would mean March 31,
Note:
- Goods & Service Tax (GST) would be payable on the listing fees at the applicable rate
- BSE reserves the right to revise the above fee structure
