Corpzo ventures Pvt Ltd

Prerequisites for AIF Registration in India Before applying for Alternative Investment Fund (AIF) Registration with SEBI, the applicant must satisfy certain legal, structural, financial, and operational requirements. These prerequisites help ensure that the proposed AIF has a suitable legal structure, qualified management, adequate infrastructure, and a clearly defined investment strategy. H2: Legal Requirements for AIF Registration A. Appropriate Charter Documents The applicant must have a suitable constitutional document, such as: Memorandum of Association (MOA) for a company Trust Deed for a trust Partnership Deed for a partnership entity The relevant document should contain provisions allowing the entity to undertake activities as an Alternative Investment Fund. B. Registration of Trust or Partnership Documents Where the AIF is established as a trust or partnership firm, the Trust Deed or Partnership Deed should be registered with the appropriate authority in accordance with applicable laws. C. No Public Invitation The charter documents should contain provisions restricting any invitation to the public to subscribe to the securities or interests of the AIF, as applicable. D. Fit and Proper Person Criteria The Applicant, Sponsor, and Manager must satisfy the "fit and proper person" criteria prescribed under the applicable SEBI regulations, including the framework specified in Schedule II of the SEBI (Intermediaries) Regulations, 2008. H2: Management and Key Personnel Requirements E. NISM Certification At least one key personnel in the investment team of the AIF Manager must obtain the prescribed NISM certification by passing the NISM Series-XIX-C: Alternative Investment Fund Managers Certification Examination, subject to the applicable SEBI requirements. F. Adequate Infrastructure and Manpower The Sponsor and Manager must have adequate infrastructure, systems, and qualified manpower to effectively perform their responsibilities and manage the activities of the AIF. This may include appropriate: Investment management systems Risk management processes Compliance mechanisms Record-keeping systems Qualified investment professionals Operational and administrative resources H2: Investment Strategy and Fund Structure G. Clearly Defined Investment Objectives The applicant should clearly describe the proposed AIF's: Investment objectives Investment strategy Proposed corpus Fund tenure Target investor category Investment focus and asset classes The investment strategy should be consistent with the proposed category and applicable SEBI requirements. H2: Corpus and Minimum Investment Requirements H. Minimum AIF Corpus Under the applicable SEBI AIF framework, an AIF generally requires a minimum corpus of ₹20 crore. The minimum corpus requirement for an Angel Fund is ₹5 crore, subject to applicable regulations. I. Minimum Investment by Investors The minimum investment amount generally applicable to an investor in an AIF is ₹1 crore. For an Angel Fund, the applicable minimum investment requirement is ₹25 lakh, subject to the conditions prescribed under the regulations. J. Investment by Employees or Directors of the Manager The minimum investment requirement for an employee or director of the AIF Manager is generally ₹25 lakh or more, subject to applicable regulatory provisions. K. Profit-Sharing Employees An employee of the Manager who participates in the profits of the AIF may be subject to specific provisions regarding investment requirements. Where applicable regulations provide an exemption, such an employee may not be required to make a separate investment in the AIF. H2: Important Note AIF registration involves more than meeting the basic eligibility conditions. The Sponsor, Manager, investment team, proposed fund structure, investment strategy, constitutional documents, and compliance framework should be reviewed together before submitting the application to SEBI. Regulatory requirements can change through SEBI notifications, circulars, and amendments. Therefore, applicants should verify the latest applicable requirements before initiating AIF registration. Corpzo provides professional assistance for AIF structuring, SEBI AIF Registration, documentation, regulatory compliance, and ongoing advisory support for fund managers and investment professionals.