Alternative Investment Funds (AIF) are defined in Regulation 2(1) (b) of SEBI (Alternative Investment Funds) Regulations, 2012. AIF refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a Trust or Company or a Body Corporate or a Limited Liability Partnership (LLP). AIF are investments which do not happen via the traditional modes of investment such as stocks, bonds, cash, property etc.
We cater the below-mentioned services for IFSC & Domestic AIFs:
Fund Registration -
- Complete hand-holding during the fund registration process-
- Reviewing the AIFs registration application.
- Coordination with the regulator, for obtaining registration.
- Assisting in representation to the regulator from the Fund Trustee’s perspective, from time to time.
- Review of Trust Deed.
- Review of Private Placement Memorandum
- Review of Contribution Agreement and side letters
- Review of Investment Management Agreement.
- Review of Other Transaction related documents, basis our expertise and experience in the relevant area.
- Facilitate registration of Trust Deed and execution of other documents.
Fund Adminstration -
During the currency of the Fund, our role would involve oversight of the Fund Manager’s activities to ensure compliance vis-a-vis through a quarterly reporting mechanism:
- PAN & TAN Application in the name of trust or scheme (as confirmed by Investment Manager).
- Opening Bank Account (as per Investment Manager (IM) Recommendation).
- Opening De-mat Account and custody (as per IM Recommendation).
- Coordination for Signing Contribution Agreement).
- Review of Compliance Reports.
- Bank Account Operations – Payments (optional).
- Signing of Income Tax Return based on confirmation from Tax consultant and IM of the fund.
- Conducting KYC Checks for IM/ Sponsor and Settlor.
Fund Accounting -
- Maintaining books of account in the system by passing daily entries.
- Provide Monthly / Quarterly MIS to the Investment Manager – provisional financial of the fund.
- Bank Account Management (based on instructions of IM).
- To prepare the summary & make monthly TDS payments within the due date (i.e. by the 7th of next month).
- To make service tax payments & file returns by the due date.
- SEBI & IFSC Quarterly Activity Report.
- Foreign Account Tax Compliance Act (FATCA) Compliance.
- Preparation of Audit of Financial Statement.
- Income Tax Return.
Key benefits for AIFs in GIFT City -
- Various tax and regulatory incentives and exemptions granted.
- Lower operating costs due to subsidies granted by the Gujarat Government.
- Availability of talent.
- Proximity to the onshore market.
- World-class infrastructure, unparalleled connectivity and transportation access.
- Access to multiple markets from GIFT City.
- Not required to maintain Net foreign exchange earnings (NFEE) separately by AIF.