It basically collects the funds from the investors, for investing in accordance with a defined investment policy for the benefits of investors; Does not come within the purview of Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, Securities and Exchange Board of India (Collective investment schemes) Regulations, 1999 or the other regulations of the Board for regulating the fund management activities. A. Relevant experience is that which has been accrued in a non-clerical role within the financial services (or related) industry. AIF: alternative investment fund within the meaning of the 2013 Law AIFM: Alternative Investment Fund Manager AIFMD: Alternative Investment ... No minimum requirement No minimum requirement No minimum requirement No minimum requirement 12 Your investment fund in Luxembourg June 2020. in a nutshell 1 UCITS . 20 Crore.The manager or sponsor/ promoterof the AIF should have a continuing interest in the AIF of not less than 2.5% of the initial corpus or Rs.5 crore whichever is lower. Landline : 02040068995. Close-ended units in AIFs have a lock-in period to which they must adhere. However, the industry demand is to bring up the number to 200, in case of angel funds, in parity with the private placement provisions under the Companies Act, 2013; Holding companies within the meaning of section 4 of the Companies Act, 2013, Other Special Purpose Vehicle which are not established by the fund managers including the securitization trusts, regulated under a specific regulatory framework, Funds which are managed by the registered securitization company or the reconstruction company. The application for the grant of certificate shall be made in Form A as specified along with the non-refundable application fee. No segregation is required in AIFs. A separate AIF return must be completed for each AIF that the AIFM is required to report on at the correct frequency. (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 as amended and Chapter 3 of the AIF Rulebook. As per existing AIF regulations, these private investment funds have been divided into 3 unique categories – Category I, Category II and Category III and the minimum qualifying amount for these schemes is Rs. 1 crore. 25 lakh. Website: www.aifpms.com Therefore it is possible to submit these returns at different frequencies. In case of no majority to extend, the AIF gets liquidated within one year following expiration. Where the investors are employees or directors of the AIF or of the fund manager, minimum investment of USD 43,000 shall be obtained. Please check that the information in the fields here below is correct. Typically Hedge Funds fall in this category. In the case of Category I and II of AIFs, managers should hold at least 2.5% of the corpus, or, Rs. This is an important point to consider when trying to understand the difference between PMS and AIF. Minimum capital (net assets for an FCP) of €1,250,000 to be reached within a period of 12 months following receipt of authori-sation from the CSSF ... and form of your AIF • Establish investment and distribution goals • Determine AIF characteristics and tax structuring Minimum AUM (within 12 … Investing Involves Risk. The fund or any scheme of the fund cannot have more than 1000 investors and each Scheme should have a corpus of Rs. This tenure can be further extended by another two years. Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors. For Category III AIFs, a manager should hold at least 5% of the corpus, or, Rs. Every client’s funds have to be segregated into separate Demat accounts in PMS. 1 Crore (USD 154 ,000. change in exit environment) at fund and investee company levels, strategy risk (i.e. 20 crores. Alternative Investment Fund shall provide at least on an annual basis, within the period of 180 days from the year end, reports to investors including the following information, as may be applicable to the Alternative Investment Fund: Category III Alternative Investment Fund shall provide quarterly reports to investors within the period of 60 days at the end of the quarter. Ltd. is an India centric, multi-asset alternative investment firm focused on Portfolio management services, public equity both listed and unlisted, private debt structure products, venture capital, and real estate AIF’s. 1 crore. Minimum Investment The AIF Regulations do not allow an AIF to accept an investment less than INR 1 crore (USD 154,000.00) (“Minimum Investment Amount”) from any investor unless such investor is an employee or a director of the AIF or an employee or director of the manager of the AIF in which case the AIF can accept investments of a minimum value of INR 25 lakh (USD 38,500.00). To enhance risk-adjusted performance, these products can use complex strategies like unlisted equity investments, long-short hedging style of investments, etc. Is a privately pooled investment whether Indian or foreign. Currently, the limit for overseas investment for SEBI registered AIFs & Venture Capital Funds (VCF) is USD 750 million i.e. Funds that undertake diverse or complex trading strategies including investment in listed or unlisted derivatives. Minimum requirements: Particulars Amount (in USD) Minimum corpus requirement for each scheme of the AIF 3,000,000 Minimum investment by an investor in AIF: o For employees or directors of the AIF or its manager o For other investors 40,000 150,000 Minimum … Typically Private Equity Funds fall in this category. The sponsor manager shall have A fund manager can have any number of clients. All AIFs are required to be registered under any one of the above mentioned categories. The only exception to this rule is angel funds that have lower qualifying criteria in … Category III Alternative Investment Funds shall make sure that the calculation of the net asset value (NAV) is independent from the fund management function of the Alternative Investment Fund and such NAV shall be disclosed to the investors at the intervals which is not longer than a quarter for close ended Funds and at intervals not longer than a month for open ended funds. An AIF means any fund established or incorporated in India in the form of a trust or a company or a LLP or a body corporate which: The eligibility criteria/conditions are as follows: The below mentioned trusts/companies/funds are excluded from the purview of Alternative Investment Funds, subject to the above conditions: SEBI has classified AIF into the following categories: Conditions for Investment and restrictions applicable to all categories of AIFs. There is no minimum tenure for Category III funds. This tenure can be further extended by another two years. The AIFMD and its regulation was transposed within the Investment Services Act in July of 2013. Generally, minimum ranges from: Rs. PwC Legal UCITS 50 lakh is required for PMS. A minimum investment of approx. Significantly higher minimum investments than mutual funds. Angel Funds as defined in the AIF Regulations; AIFs / Schemes with minimum commitment of INR 70 crore from each investor, subject to obtaining a waiver from the investors in the prescribed form. These are defined as institutional investors, professional investors, and investors who have confirmed in writing that they adhere to the “well-informed” investor status, and who either invest a minimum of EUR 125,000 in the SIF or have been assessed by a credit institution, investment firm or management company which certifies the investors’ expertise, experienc… AIF & PMS Advisors India Pvt. Legal Instruments Add to favourites Print In AIF, the tenure of the securities for Category I and II is a minimum of three years. The sponsor manager shall have a continuing interest in the AIF and such interest shall not be through the waiver of management fees. Content Options Content Options. In case of no majority to extend, the AIF gets liquidated within one year following expiration. Whereas for angel investors, the minimum investment is INR 25 lakhs. Financial information of the investee companies. Similarly, an ‘undertaking for collective investment in transferable securities’ or ‘UCITS’ is similar to an AIF in that it is a collective investment vehicle. Office no B-47, 2nd floor, Shreenath Plaza, Dyneshwar Paduka Chowk, Off Fergusson college road, Shivaji Nagar, Pune, Maharashtra, India, Pin – 411005, Email id: vikas@aifpms.com However, the investment by AIFs in foreign securities is subject to the following conditions : (a) Prior-approval of SEBI is required for investment; (b) Investments of up to 25% of the investible fund of the scheme of the AIF is allowed; (c) Investments … minimum investment contribution by the Sponsor/manager. extra financial risks, including environmental, social and corporate governance risks, at fund and investee company level. In the case of AIFs, an investor must invest at least Rs. The minimum investment from one person is ₹10,000,000. The Minimum Capital Requirement Report must be signed by a director or a senior manager of the management company. PMS are of two types; discretionary and non-discretionary based on the authority of the fund manager. USD 175,000 from shall be required from each investor in the AIF. There is no cap specified on the number of investors for PMS. The initial contribution of the fund manager or promoter should be 2.5% or ₹50,000,000, whichever is less (for category 1 and 2) and 5% or ₹100,000,000 for Category 3 AIF Address Mobile: 9881156123 While PMS has no specific requirements on Manager contribution, AIFs require managers to have continued interest. The AIF shall ensure minimum investment in MSME ventures, as stipulated below: (a) If the corpus of the AIF is less than Rs.500 crore: The AIF shall invest twice the contribution made by SIDBI or 50% of drawable corpus of the Fund, whichever is more, in MSME companies, as defined under MSMED Act, 2006 or as per the guidelines stipulated by SIDBI, from time to time. The AIFM Law defines “carried interest” as a share in the profits of the AIF accrued to the AIFM as compensation for the management of the AIF and excluding any share in the profits of the AIF accrued to the AIFM as a return on any investment by the AIFM into the AIF. 20 Crores (USD 3,080,000.00) for each scheme and Rs. In PMS, there is no pooling of investor funds. Any pool which is regulated by the other Indian regulator. The Alternative Investment Fund Managers Directive (“AIFMD”) is a 2011 EU Directive regulating the marketing and management of funds, excluding UCITS funds, within the EU. AIF may raise money from any investor whether Indian, foreign, or of Non-Resident Indian (NRI). On the other hand, AIFs are grouped into three – Category I, II, and III, depending on where the funds are invested. The minimum corpus is Rs20cr and Rs10cr in case of angel investors. Structure of AIF can be designed for a particular investment strategy either in terms of exposure in a specific sector or investment in diverse asset classes. What is the corpus of the Alternative Investment Fund (AIF)? 00 ), or Rs. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve its objectives. Investment in a SIF is limited to “well-informed” investors that are able to adequately assess the risks associated with an investment in such a vehicle. For the angel fund, the amount is Rs. However, for angel funds, Investors should be angel investors only; Minimum corpus should be Rs. Whereas in the case of AIF, pooling of funds is a necessity. The relevant thresholds are: (i) €500 million, provided the AIF is not leveraged and investors have no redemption rights for the first five years; or (ii) €100 million (including assets acquired through leverage). 10 crores, whichever is lower. Opting for licensing of an AIF as an AIFM ... Not Subject to Minimum Capital Requirement. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Funds that do not leverage or undertake to borrow other than to meet the operational requirement which does not fall under Categories I and III. 4. There are however no minimum investment requirement on units of AIF issued to the employees of the manager for profit sharing; Maximum number of investors can be 1000 for each scheme and 49 in case of angel funds. EU passporting. Likewise, the minimum amount for investment is INR 25 lakhs for the senior management like the directors, fund managers and all the people working for the AIF. In case of investors who are employees or directors of the AIF or employees or directors of the Manager, the minimum value of investment shall be twenty five lakh rupees. A Qualifying Investor Alternative Investment Fund (QIAIF) is an alternative investment fund regulated in Ireland ideal for investors who have at least €100,000 to invest. Any forward-looking information and/or opinions contained in this document are based on the market information available at the time of publication and are subject to a number of known and unknown risks, uncertainties, assumptions as to future events and other factors that could cause the actual results to differ materially from... B47 Shreenath Plaza, Dyneshwar Paduka chowk, FC road, Pune - 411005, Office no B-47, 2nd floor, Shreenath Plaza, Dyneshwar Paduka Chowk, Off Fergusson college road, Shivaji Nagar, Pune, Maharashtra, India, Pin – 411005. A separate Demat account needs to be created for every independent PMS investor. The above requirements shall be applicable with effect from 1 … 5 crores, whichever is lower. 25 Lakhs (USD 38,500.00) (in case of employees/directors/fund manager of AIF or angel investors), as applicable. At any time, not more than 1000 investors are allowed. The expiration date is considered one year from the start date or a year from the extended time. The extension is subject to the approval of two-thirds of the investors by value of investment in the AIF. In PMS, there is no defined tenure for the securities. Material risks and how these risks are managed which may include: leverage risk at fund and investee company levels, realization risk (i.e. In addition to holdings the AIF® Designation, a minimum of eight (8) years of relevant experience is required to attain the Accredited Investment Fiduciary Anaylst® (AIFA®) Designation. Since AIF work like mutual funds, by pooling capital, a larger corpus is pooled together. 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