Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012

Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (also called AIF Regulations) are a set of regulations introduced by Securities and Exchange Board of India (SEBI) in 2012, to regulated pooled investment funds in India, such as real estate, private equity and hedge funds.^[1]

Summary

These regulations apply to all pooled investment funds registered in India which received capital from Indian or foreign investors.^[1] These were made to regulated funds that were not covered under the SEBI (Mutual Funds) Regulations, 1996; SEBI (Custodian Of Securities) Regulations, 1996 and any other regulations of SEBI.^[2] This was introduced to bring unregistered funds in India under the ambit of law. Prior to the introduction of this, many funds were operating in India that could not be classified as domestic venture capital funds (VCF), foreign venture capital investors (FVCI) or foreign institutional investor (FII).^[2] After introduction of these regulations in July 2012, 123 entities registered themselves by November 2014.^[1]

The Alternative Investment Funds (AIFs) have been categorised into three classes:

Category I: These funds receive incentives from the government, SEBI or other regulating agencies. These include social venture funds, infrastructure funds, venture capital funds and SME funds.^[1]
Category II: These funds are allowed to invest anywhere in any combination, but cannot take debts, except for day-to-day operation purposes. These include private equity funds and debt funds.^[1]^[2]
Category III: Funds that make short-term investments and then sell, like hedge funds, come under this.^[1]

AIFs are usually marketed towards high-worth persons. The minimum investment from one person is ₹10,000,000. The minimum corpus of the funds is ₹200,000,000. At any time, not more than 1000 investors are allowed. The initial contribution of the fund manager or promoter should less than 2.5% or ₹50,000,000, whichever is less.^[3]

In the 2015 Union budget of India, it was announced that foreign direct investments (FDI) would be allowed in AIFs. It was also announced that the tax liability will be shifted from the funds to the investors in Category I and Category II.^[4]

References

1 2 3 4 5 6 "SEBI permits 123 alternative investment funds to operate in India". The Hindu Business Line. 1 December 2014. Retrieved 17 April 2015.
1 2 3 Pratap Giri S. Investment Banking. Tata McGraw-Hill Education. p. 233. ISBN 978-1-259-05872-1. Retrieved 17 April 2015.
↑ "De-jargoned: Alternative investment funds". Live Mint. 4 March 2015. Retrieved 17 April 2015.
↑ "Govt to allow FDI in alternative investment funds". The Hindu Business Line. 28 February 2015. Retrieved 17 April 2015.

Indian Legislations

Constitution of India (amendments) Indian Penal Code CrPC

In Force

Corruption	Benami Transactions Black Money Corruption Lokpal Mines & Minerals Act 2015 Money Laundering Whistle Blowers

Criminal	Armed Forces (Special Powers) Act Armed Forces Tribunal Act, 2007 Arms Act, 1959 Army Act Criminal Law (Amendment) Act, 2013 Indian Evidence Act Juvenile Justice (Care and Protection of Children) Act, 2015 National Security Act (India) Protection of Women from Domestic Violence Act, 2005 Scheduled Caste and Scheduled Tribe (Prevention of Atrocities) Act, 1989 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

Education	National Institutes of Technology Act, 2007 Right of Children to Free and Compulsory Education Act University Grants Commission Act, 1956

Environment	Biological Diversity Act, 2002 Environment Protection Act, 1986 Indian Forest Act, 1927 National Green Tribunal Act Protection of Plant Varieties and Farmers' Rights Act, 2001 The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 Wildlife Protection Act, 1972 CAMPA bill Air (Prevention and Control of Pollution) Act

Financial	The High Denomination Bank Notes (Demonetisation) Act, 1978 Aadhaar Act COFEPOSA Depositories Act Expenditure Tax Act, 1987 Fiscal Responsibility and Budget Management Act, 2003 Foreign Contribution Regulation Act Foreign Exchange Management Act Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 The Income-tax Act, 1961 Indian Stamp Act, 1899 Insolvency and Bankruptcy Code Insurance Act, 1938 National Rural Employment Guarantee Act, 2005 Negotiable Instruments Act, 1881 Electricity Act Real Estate (Regulation and Development) Act, 2016 The Competition Act, 2002 Securities Laws (Amendment) Act, 2014 Street Vendors Act, 2014 Urban Land (Ceiling and Regulation) Act, 1976

Healthcare	Central Council of Homoeopathy Act, 1973 Clinical Establishments Act Dentist Act Drugs and Cosmetics Act, 1940 Drugs and Magic Remedies Act Indian Medical Council Act Mental Health Act, 1987 Narcotic Drugs and Psychotropic Substances Act, 1985

Personal	Hindu Adoptions and Maintenance Act (1956) The Hindu Marriage Act, 1955 Hindu Minority and Guardianship Act Hindu Succession Act, 1956 Special Marriage Act, 1954 The Muslim Women (Protection of Rights on Divorce) Act 1986

Social	Child Labour (Prohibition and Regulation) Act Consumer Protection Act, 1986 Essential Commodities Act Essential Services Maintenance Act Indecent Representation of Women (Prohibition) Act National Food Security Act, 2013 Pre-Conception and Pre-Natal Diagnostic Techniques Act, 1994 Societies' Registration Act The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 Unorganised Workers' Social Security Act Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995

State Laws	Anti-Superstition and Black Magic Act Chhattisgarh Food Security Act, 2012 Maharashtra Control of Organised Crime Act The Gujarat Local Authorities Laws (Amendment) Bill, 2009 Puducherry Prevention of Anti-Social Activities Act

State Reorganisation	Chattisgarh Jharkhand Punjab States Telangana Uttarakhand

Terrorism	Unlawful Activities (Prevention) Act

Transportation	Aircraft Act Motor Vehicles Act, 1988 National Waterways Act, 2016 Inland Vessels Act Metro Railways Act, 1978 Metro Railway Act, 2002

Organisation / Body	Chartered Accountants Act, 1949 Companies Act 2013 Gram Nyayalayas Act, 2008 Indian Trusts Act, 1882 Panchayats (Extension to Scheduled Areas) Act 1996 Reserve Bank of India Act, 1934

Other	Delimitation Act Enemy Property Act, 1968 Information Technology Act, 2000 Nuclear Liability Act Representation of the People Act, 1951 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 Right to Information Act, 2005 State Emblem of India (Prohibition of Improper Use) Act, 2005 The Foreigners Act, 1946

Repealed

Pre-Independence	Age of Consent Act, 1891 Criminal Tribes Act Hindu Widows' Remarriage Act, 1856 Land Acquisition Act 1894 Official Secrets Act (India)

Post-Independence	Anti-Copying Act, 1992 Foreign Exchange Regulation Act Gift Tax Act, 1958 Illegal Migrants (Determination by Tribunal) Act, 1983 Interest Tax Act, 1974 Juvenile Justice (Care and Protection of Children) Act, 2000 Maintenance of Internal Security Act Prevention of Terrorism Act, 2002 Terrorist and Disruptive Activities (Prevention) Act The Gold (Control) Act, 1968 The Monopolies and Restrictive Trade Practices Act, 1969 Wealth Tax Act, 1957

Bills

Proposed	Marriage Laws Amendment Bill Road Transport and Safety Bill Uniform civil code Geospatial Information Regulation Bill Gujarat Control of Organised Crime Act Taxation Laws (Second Amendment) Bill, 2016

Lapsed	Women's Reservation Bill

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Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012

Summary

See also

References

Further reading