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
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
'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
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
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
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
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
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
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
Partial Redemption in Open-Ended AIFs: How the Minimum Investment Rule Still Applies An investor in an open-ended Category III AIF asks to take some money off the table. It sounds like a routine operations instruction: process the redemption, pay out at the applicable NAV, update the ... AIF Fund Compliance Investor Protection SEBI 31-Oct-2026
Category III AIF Leverage Breach: SEBI's Reporting and Square-Off Timeline Explained On a volatile Monday, a sharp fall in markets pushes a long-short Category III AIF's exposure above its permitted leverage. In many businesses, the instinct would be to wait a few days for prices to r... AIF Fund Compliance Investor Protection SEBI 31-Oct-2026
AIF Performance Benchmarking: Reporting Duties Start One Year After First Close For its first year, an AIF scheme's performance is largely a conversation between the manager and its investors. After that, the regulatory framework puts the numbers into an industry-wide comparison.... AIF Fund Compliance Investor Protection SEBI 31-Oct-2026