It is divided into three categories: Category 1, Category 2 and Category 3. Investors looking to diversify their portfolio can invest in AIFs. The minimum investment limit for investors in AIF is ₹ 1 crore, while ₹ 25 lakh is for directors, employees, and fund managers.
It comes with a minimum lock-in period of three years. It can be established, registered, or incorporated in the form of an LLP, company, trust, partnership firm or body corporate.
AIF Registration Fees:
The registration fees of AIF are determined by the category in which the fund is registered. These fees must be paid in full upon submission of the application.
The costs cover SEBI’s assessment process and help the fund comply with regulatory requirements. After receiving the registration fee, SEBI will register the applicant as an Alternative Investment Fund.
Category I AIF (except Angel Funds): For this category, the SEBI registration fee is ₹ 500,000 + 18% GST.
Category I AIF – VCF – Angel Fund: For this category, the SEBI registration fee is ₹ 200,000 + 18% GST.
Category II Fees: For this category, the SEBI registration fee is ₹ 10,00,000 + 18% GST.
Category III Fees: For this category, the SEBI registration fee is ₹ 15,00,000 + 18% GST.
How to get registered as an AIF?
– To register as an AIF, the applicant must submit an application on the official website of SEBI. When an applicant registers as an Alternative Investment Fund, the system generates a login ID. It then automatically sends the Login ID and Password to the applicant after the creation of the SI portal login.
– The applicant then fills up the details by clicking ‘Fresh Registration’ under the tab ‘AIF’ given on the SEBI portal after receiving the Login ID and Password. Pay the required Application fees through online mode available on SI Portal.
– The applicant is required to submit information and upload the documents. After filling in all the details, the applicant needs to submit the online application form by clicking the ‘Final Submit’ button.
– SEBI receives the online application that the applicant submits. After final submission, applicants can track the status of their applications using the application number.
– To facilitate processing, applicants must submit a physical application to SEBI with all required documents and information.
Documents Required for Alternate Investment Fund Registration:
The documents required for registration include identity proof, proof of address, necessary declarations required for processing the application, financial information of the investment manager, details of shareholders or partners of the sponsor and investment manager and key investment team members.
