Alternative Investment Fund (AIF) Services

Alternative Investment Fund (AIF) Services 

Introduction

Alternative Investment Funds (AIFs) are privately pooled investment vehicles established in India for investing in accordance with a defined investment policy for the benefit of investors. AIFs are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012.

AIFs typically invest in startups, private equity, venture capital, infrastructure, private credit, and other alternative asset classes. Based on investment strategy and regulatory classification, AIFs are categorized into Category I, Category II, and Category III.

Operating and managing an AIF involves strict regulatory compliance, reporting requirements, investor servicing, audit, taxation, and ongoing monitoring obligations. Professional support ensures proper structuring, regulatory compliance, reporting accuracy, and smooth fund operations.

H K Davra & Co. provides comprehensive AIF support services covering fund setup, ongoing compliance, audit support, taxation, reporting, and regulatory assistance.

Who Needs This Service

Our AIF services are designed for:

• Investment Managers managing Alternative Investment Funds

• Fund Sponsors establishing new AIF structures

• Existing AIFs requiring ongoing compliance and reporting support

• Venture Capital Funds, Private Equity Funds, and Private Credit Funds

• Category I, Category II, and Category III AIFs

• Fund Management entities requiring regulatory and compliance support

• Trustees and Fund Administrators

• Investment entities seeking proper AIF regulatory compliance

This service supports AIFs throughout their lifecycle, from setup to ongoing operations and compliance.

Scope of Services – What We Cover

We provide end-to-end support across the complete lifecycle of an AIF.

AIF Setup and Registration Support

• Assistance in structuring AIF entities

• Advisory on appropriate AIF category (Category I, II, or III)

• Support in preparation and review of AIF application documents

• Assistance in SEBI AIF registration process

• Review of Private Placement Memorandum (PPM) from compliance perspective

• Coordination with legal advisors and other intermediaries

Regulatory Compliance under SEBI AIF Regulations

• Ensuring compliance with SEBI (Alternative Investment Funds) Regulations, 2012

• Compliance with SEBI Master Circular for AIFs

• Monitoring regulatory compliance requirements

• Compliance tracking and regulatory calendar management

• Assistance in maintaining regulatory records and documentation

Ongoing Compliance and Reporting Support

• Preparation and review of periodic compliance reports

• Assistance in submission of reports to SEBI

• Compliance monitoring of investment conditions and restrictions

• Ensuring compliance with fund operational guidelines

• Supporting compliance with investor reporting requirements

Investor Contribution and Drawdown Compliance

• Review of investor contribution records

• Assistance in drawdown compliance and documentation

• Ensuring proper accounting and reporting of investor contributions

• Verification of fund inflows and utilization

Financial Reporting and Audit Support

• Preparation and review of financial statements of the AIF

• Supporting statutory audit process

• Coordination with auditors

• Ensuring proper financial reporting and disclosures

Taxation Support for AIFs

• Assistance in tax compliance of AIFs

• Review of taxation framework applicable to AIF structure

• Support in income reporting and tax compliance

• Assistance in handling tax-related compliance matters

Compliance Certificates and Regulatory Certifications

• Issuance of compliance certificates, including certificates required under SEBI AIF regulations

• Issuance of No Fund Raised Certificate, where applicable

• Issuance of professional certifications required for regulatory compliance

• Compliance certification as required by trustees or regulatory authorities

Operational and Compliance Review

• Review of fund operations from compliance perspective

• Identification of compliance gaps or regulatory risks

• Advisory on improving compliance framework

• Supporting implementation of proper compliance systems

Investor Reporting Support

• Assistance in preparation of investor reports

• Ensuring compliance with reporting requirements to investors

• Supporting transparency and reporting accuracy

How We Help Your Business

Our AIF services help Investment Managers, Sponsors, and Funds by:

• Ensuring full compliance with SEBI AIF Regulations and Master Circular

• Supporting smooth fund setup and registration

• Strengthening regulatory compliance framework

• Supporting accurate financial reporting and audit readiness

• Reducing regulatory and compliance risks

• Supporting efficient fund operations

• Ensuring transparency and compliance with investor and regulatory requirements

• Providing ongoing compliance and regulatory support

This allows fund managers to focus on investment activities while ensuring compliance and operational efficiency.

Our Approach / Methodology

We follow a structured and regulatory-focused approach to AIF compliance and support.

Understanding Fund Structure and Operations

• Reviewing fund structure, category, and regulatory applicability

• Understanding fund strategy, investor structure, and operational framework

Compliance Framework Review

• Reviewing compliance requirements under SEBI regulations

• Identifying applicable regulatory obligations

Compliance Implementation and Monitoring

• Supporting implementation of compliance framework

• Monitoring ongoing compliance requirements

Reporting and Certification

• Preparing compliance reports and certifications

• Supporting regulatory and investor reporting

Ongoing Compliance Support

• Providing continuous compliance and advisory support

• Assisting in handling regulatory queries or compliance requirements

Why H K Davra & Co.

H K Davra & Co. provides specialized professional services for Alternative Investment Funds with a strong focus on regulatory compliance and fund governance.

Key strengths include:

• Strong understanding of SEBI AIF Regulations and Master Circular

• Professional experience in AIF compliance, certification, and reporting

• Structured and systematic compliance approach

• Expertise in regulatory compliance and financial reporting

• Reliable and timely execution of assignments

• Independent and professional compliance support

• Commitment to professional ethics and confidentiality

Our objective is to support AIFs in maintaining proper compliance, regulatory discipline, and operational efficiency.

Scope of Engagement and Deliverables

As part of our AIF engagement, clients receive:

• Support in AIF setup and SEBI registration

• Ongoing compliance monitoring and reporting

• Preparation and review of financial and compliance reports

• Issuance of regulatory compliance certificates

• Support in audit and taxation compliance

• Assistance in investor reporting and compliance

• Ongoing professional compliance and advisory support

The scope of engagement is customized based on the AIF category, structure, and regulatory requirements.