KYC, AML and Outsourcing in AIFs: Why the Manager Remains Responsible A new AIF manager engages a fund administrator to onboard investors, run KYC and maintain the investor register. Months later, it emerges that one investor's beneficial owner was never properly identi... AIF Fund Compliance Investor Protection SEBI 31-Oct-2026 AIF & Fund Regulation
Stamp Duty on AIF Units: Rates, Collecting Agents and Who Pays on Issue and Transfer Every drawdown an AIF makes from its investors creates a small but statutory liability that many managers overlook: stamp duty on the issue of units . Since July 2020, AIF units have been brought into... AIF Fund Compliance Fund Governance SEBI 31-Oct-2026 AIF & Fund Regulation
No Assured Returns in AIFs: The SEBI Code of Conduct for Managers, Sponsors and Trustees ‘Minimum 15% a year, capital fully protected.’ A sentence like this can win a meeting with a prospective investor. In an Alternative Investment Fund, it can also be a breach of SEBI's Code of Conduct.... AIF Fund Governance Investor Protection SEBI 31-Oct-2026 AIF & Fund Regulation
'Invest Primarily' in Category II AIFs: The More-Than-50% Test and the 2025 Listed Debt Change Is a Category II AIF that holds most of its money in fixed deposits, AAA bonds and liquid funds still a private equity or private credit fund? SEBI's answer turns on one word in the Regulations: prima... AIF Fund Compliance Fund Governance Investor Protection SEBI 31-Oct-2026 AIF & Fund Regulation
Custodian for AIFs: Mandatory Appointment, Associate Custodian Conditions and Timelines Until 2024, a small Category I or II AIF with a corpus of ₹500 crore or less could hold its own investments without a custodian. That exemption has gone. SEBI now requires every AIF to appoint a SEBI-... AIF Fund Compliance Investor Protection SEBI 31-Oct-2026 AIF & Fund Regulation
Overseas Investment by AIFs: The USD 1,500 Million Limit and the Four-Month Validity Rule An Indian AIF finds a promising unlisted technology company abroad, applies to SEBI for an overseas investment allocation and gets it. Then the term sheet stalls. A few months later, the allocation ha... AIF Due Diligence Fund Compliance Fund Governance SEBI 31-Oct-2026 AIF & Fund Regulation
AIF Compliance Officer and KMP: Why the CEO Cannot Be the Compliance Officer In a young fund management firm, the founder often runs investments, raises money and also signs off on compliance. That works for a start-up. It does not work for a SEBI-registered AIF manager. SEBI ... AIF Corporate Governance Fund Governance SEBI 31-Oct-2026 AIF & Fund Regulation
Category III AIF Leverage Limit: The 2x NAV Cap, Exposure Calculation and Breach Rules Category III AIFs, often described as India's hedge funds, are the only AIF category allowed to use leverage as part of their strategy. Long-short equity, arbitrage and derivatives-based strategies de... AIF Fund Compliance Fund Governance Investor Protection SEBI 31-Oct-2026 AIF & Fund Regulation
Special Situation Funds (SSF) in India: ₹100 Crore Corpus, Eligible Assets and Lock-in Rules A bank wants to sell a defaulted loan to a large infrastructure company. Most investors would see a problem asset. A specialist fund manager sees a recovery opportunity, provided the fund has the scal... AIF Fund Compliance Investor Protection SEBI 31-Oct-2026 AIF & Fund Regulation
Category III AIF Concentration Limit: Calculating the 10% Cap on NAV for Listed Equity A Category III fund buys a listed stock at 9% of the fund. Six months later, the stock has doubled while the rest of the portfolio is flat, and the position is now well above 10%. Has the fund breache... AIF Fund Compliance Fund Governance SEBI 31-Oct-2026 AIF & Fund Regulation
Debt Structure Analysis in Due Diligence: The Risk Hidden Behind Low Borrowings The company had low debt but high risk. Debt ratios were comfortable, yet a review of the borrowings showed short-term loans funding a new plant, working capital lines renewed and stretched every year... Companies Act Due Diligence Financial Due Diligence M&A 31-Oct-2026 Due Diligence
Minimum Corpus of ₹20 Crore for AIF Schemes: What Happens When It Falls Below An open-ended Category III scheme has a corpus of ₹21 crore. One large investor asks to redeem ₹2 crore. The redemption is routine, but it takes the scheme below ₹20 crore, and from that moment SEBI's... AIF Fund Compliance Fund Governance SEBI 31-Oct-2026 AIF & Fund Regulation