AIF Application Process

Setting up an Alternative Investment Fund (AIF) in India involves a structured application process with SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012 — covering eligibility, sponsor and manager track record, fund documents, and detailed disclosures.

With three Categories (I, II, and III), each having different investment objectives, leverage limits, and tax treatment, choosing the right category and submitting a complete, well-documented application is critical to obtaining a smooth registration without iterative SEBI queries.

We provide end-to-end AIF registration support — from category selection and entity setup to drafting of the PPM and trust deed, completing Form A, replying to SEBI queries, and obtaining the SEBI registration certificate — for sponsors, managers, and family offices.

Our AIF Application Services

Category Selection

Advisory on selecting Category I, II, or III based on investment strategy and target investors.

Entity & Trust Setup

Setting up the AIF as a trust, LLP, or company with sponsor and manager structures.

Sponsor & Manager Eligibility

Assessment of eligibility, net worth, key investment team, and track record requirements.

Form A Application

Preparation and filing of SEBI Form A application with supporting documents and declarations.

PPM & Fund Documents

Drafting of Private Placement Memorandum, trust deed, contribution agreement, and IMA.

SEBI Query Handling

Responses to SEBI queries on application, fund structure, and disclosures during registration.

Registration Certificate

Coordination through to grant of SEBI registration certificate and launch readiness.

Post-Registration Compliance

Initial compliance setup including reporting templates, disclosures, and ongoing filings.

Our AIF Registration Process

Strategy & Eligibility

Discussion on strategy, category, and confirmation of sponsor / manager eligibility.

Entity & Documentation

Setting up the trust / LLP / company and drafting fund documents and PPM.

Form A Filing

Submission of Form A with supporting documents, declarations, and fee.

SEBI Review & Replies

Handling of SEBI queries, clarifications, and document revisions during the review.

Registration & Launch

Receipt of SEBI registration certificate and onboarding of investors and service providers.

Why a Structured AIF Application Matters

✓ Faster, smoother SEBI registration

✓ Right category and structure from day one

✓ Clean PPM and fund documentation

✓ Reduces back-and-forth SEBI queries

✓ Aligns sponsor, manager, and investor interests

✓ Sets up robust post-registration compliance

✓ Builds investor confidence in governance

✓ Establishes a scalable platform for future schemes

FAQs on AIF Application Process

What is an Alternative Investment Fund (AIF)?

An AIF is a privately pooled investment vehicle established or incorporated in India which collects funds from sophisticated investors, whether Indian or foreign, for investing in accordance with a defined investment policy. AIFs are regulated by SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012.

What are the three categories of AIFs?

Category I includes funds investing in start-ups, SMEs, social ventures, infrastructure, and other areas considered economically or socially desirable. Category II covers funds that do not fall under Category I or III and do not undertake leverage other than to meet day-to-day operational requirements. Category III includes funds employing diverse or complex trading strategies, often using leverage including through investment in listed or unlisted derivatives.

What is the typical legal form of an AIF?

AIFs are most commonly set up as trusts under the Indian Trusts Act, 1882, with the trust acting as the AIF and a separate company or LLP acting as the investment manager. Some AIFs are also set up as LLPs or companies, depending on tax, regulatory, and investor considerations.

What is the role of the sponsor and the manager?

The sponsor establishes the AIF and commits a minimum 'continuing interest' contribution to align interests with investors. The investment manager is the entity responsible for managing the fund's investments and operations. The sponsor and manager are subject to specific eligibility and net worth conditions under the AIF Regulations.

How long does AIF registration typically take?

Once a complete Form A and supporting documentation are submitted, SEBI review and registration can typically take a few months. The exact timeline depends on the quality of the application, the complexity of the structure, and the time taken to respond to SEBI queries.

What is a PPM and why is it important?

The Private Placement Memorandum (PPM) is the principal disclosure document for an AIF. It contains information about the fund's strategy, structure, fees, risks, investor rights, and conflicts of interest. SEBI prescribes a template format for PPMs and requires periodic updates and audit of compliance with PPM disclosures.

What ongoing compliances apply after AIF registration?

Ongoing compliances include investor reporting, periodic filings with SEBI, PPM audit, valuation requirements, and compliance with investment conditions, leverage limits, and prudential norms applicable to the relevant category. Robust internal compliance frameworks are essential to manage these on a continuous basis.

Set Up Your AIF the Right Way

Partner with our AIF specialists to navigate SEBI registration, documentation, and launch with confidence.

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