Sebi launches online registration system for AIFs
New Delhi: Markets regulator Securities and Exchange Board of India (Sebi) on Monday said it has introduced an online registration system for alternative investment funds (AIFs) to make it easier to do business.
The new system would help AIFs to complete registration and other regulatory filings with Sebi much faster and in a cost-effective manner. “All applicants desirous of seeking registration as an AIF are now required to submit their applications online only, through Sebi intermediary portal,” Sebi said in a circular.
The online system, which can be used to file compliance reports and submit applications for any request under the provisions of AIF, has been made operational with immediate effect, the regulator noted. Also, the existing Sebi registered AIFs have been advised to activate their online accounts. AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.
Under Sebi guidelines, AIFs can operate broadly in three categories. The category-I AIFs are those funds that get incentives from the government, Sebi or other regulators and include social venture funds, infrastructure funds, venture capital funds and SME funds. The category-II AIFs can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include private equity funds, debt funds or fund of funds.
The category-III AIFs are those trading with a view to make short-term returns and include hedge funds, among others.