Article · Guide

PE and VC fund formation in India: AIF legal FAQ guide

King Stubb & Kasiva · ksandk.com Free Advanced India

A law firm's question-by-question guide to forming a fund under SEBI's AIF rules: the categories, Rs 20 crore minimum corpus per scheme, Rs 1 crore minimum per investor (Rs 25 lakh for employees and directors), the manager's continuing interest of the lower of 2.5% or Rs 5 crore, trust structures, compliance, and the GIFT City option.

  • VC funds usually register as Category I; hedge funds and PIPE funds as Category III.
  • The sponsor or manager must keep the lower of 2.5% of corpus or Rs 5 crore in the fund.
  • Consider GIFT City IFSC if your investors are mostly overseas.
Open on ksandk.com ↗

The question it answers

  1. How do I start an investment fund, like a hedge fund or VC fund, in India?

Read with it

  1. SEBI's own announcement of the rules every private fund in India is registered under: three categories of Alternative... sebi.gov.in Article · Press release SEBI notifies SEBI (Alternative Investment Funds) Regulations, 2012 Securities and Exchange Board of India
  2. Where an Alternative Investment Fund, portfolio manager or investment adviser applies to SEBI for registration and files... siportal.sebi.gov.in Tool · Official portal SEBI intermediary registration portal Securities and Exchange Board of India
  3. SEBI's own data on commitments raised and investments made by AIFs, by category. It shows the scale of the market a new fund... sebi.gov.in Article · Data Alternative Investment Funds: statistics (SEBI) Securities and Exchange Board of India
  4. The regulator for GIFT City's international financial services centre, which registers fund management entities and funds aimed... ifsca.gov.in Article · Official site International Financial Services Centres Authority (IFSCA) IFSCA
eChai Partner Brands The partnership →