Are AIF regulated?
The board of Securities and Exchange Board of India (SEBI) has approved amendments to the regulations for alternative investment funds (AIFs) during the meeting held on Friday. The changes are meant to ease compliance for AIFs, provide investment flexibility and streamline regulatory processes.
Are alternative investment funds regulated?
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. Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India.
Does an AIF need an AIFM?
The AIFM is responsible for ensuring compliance with AIFMD in respect of each AIF it manages, even where such compliance may be outside of its control. If the AIFM is unable to ensure compliance, the AIF will no longer be able to be marketed in the EU and the AIFM will be required to resign as AIFM of the AIF.
Who regulates alternative investment funds?
Alternative Investment Fund is described under Regulation 2(1)(b) of the Regulation Act, 2012 of Securities and Exchange Board of India (SEBI). AIF can be established in the form of a company or a corporate body or a trust or a Limited Liability Partnership (LLP).
What is an unregulated AIF?
An unregulated vehicle qualifies as an AIF if its activities fall within the scope of the AIFM Law and if no exemption is available. Unregulated vehicles are useful for private equity, venture capital, infrastructure and real estate investment structuring, as well as for a holding and financing activity.
What is a Category 3 AIF?
Category-III AIFs include hedge funds which invest in public markets. They can take bets on market direction. This means they can also make money when markets are crashing. They are characterised by the fact that they can also invest borrowed money to provide higher returns.
How many AIFs are there in India?
There are over 750 AIFs registered with the market regulator SEBI.
Can a non EU AIFM manage an EU AIF?
Detailed rules are contained in Article 37 for a non-EU AIFM intending to manage EU AIF or market AIF that it manages. Article 37(1) requires such non-EU AIFM to have prior authorisation to do so from their Member State of reference. Pursuant to Article 37(2) a non-EU AIFM must comply with the Directive.
What qualifies as an AIF?
What is an AIF Luxembourg?
Fostering growth in alternative funds AIFs refer to all investment funds that are not covered by the EU Directive on UCITS and instead fall under the Alternative Investment Fund Manager Directive (AIFMD). This includes hedge funds, funds of hedge funds, venture capital, private equity funds and real estate funds.