The Securities and Exchange Board of India (Sebi) has recommended that the certificate of registration of eight alternative investment funds (AIFs) be cancelled for non-compliance of AIF regulations and failure to file periodic reports.
- The eight funds failed to adhere to Section 28 of AIF regulations, which require funds to file periodic reports with regard to activities as called upon by the Sebi Board.
- This came to light while preparing investment data for the quarter ended December 2020 and the subsequent three quarters.
- AIFs must submit periodic reports about their activities and operations, including details of funds raised and invested under various schemes as well as categories of investors under the schemes.
About Alternative Investment Funds (AIF)
- In India, alternative investment funds (AIFs) are defined in Regulation 2(1) (b) of Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
- It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).
- Hence, in India, AIFs are private funds which are otherwise not coming under the jurisdiction of any regulatory agency in India.
- The term “alternative investment fund” refers to the collection of pooled investment funds that infuse in hedge funds, private equity, venture capital, and other investment types.
