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 a Company or a Body Corporate or a Limited Liability Partnership (LLP). AIF are the investments which do not happen via the traditional modes of investment such as stocks, bonds, cash, property etc.

Fund Registration -

  • Complete hand holding during fund registration process.
  • Drafting and filing of AIF application with SEBI.
  •  Co-ordination with SEBI, for obtaining registration.
  • Assisting in representation to SEBI from Fund Trustee perspective at time of application to SEBI.

Documentation -

  • Drafting of Trust Deed.
  • Drafting of Contribution Agreement.
  • Drafting of Investment Management Agreement.
  • Drafting 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 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 IM Recommendation).
  • Opening De-mat Account and custody (as per IM Recommendation).
  • Co-ordination for Signing Contribution Agreement (stamp papers will be procured by IM only).
  • Review of Quarterly Compliance Reports and Trustee Compliance Report.
  • Approval for Investments based on recommendation letter from IM and IC Approval (this is only for CAT I & II).
  • Bank Account Operations – Payments (optional).
  • Review and signing of Annual Financials based on draft audit report and confirmation from IM that financials are in order.
  • Review of Tax computation and signing of Income Tax Return based on confirmation from Tax consultant and IM of the fund.
  • Approval for Distribution based on Recommendation letter from IM and all details of tax discharged on sale/income of the fund.

Fund Accounting -

  • Maintaining books of account in system by passing daily entries.
  • Provide Monthly / Quarterly MIS to Investment Manager – provisional financial of the fund.
  • Bank Account Management (based on instructions of IM).
  • To prepare the summary & make monthly TDS payments within due date (ie by the 7th of next month).
  • To make service tax payments & file returns by due date.
  • SEBI Quarterly Compliance Report.
  •  Foreign Account Tax Compliance Act (FATCA) Compliance.
  • Preparation of Audit of Financial Statement.
  •  Etds Statements (returns).
  •  Income Tax Return.

Catalyst Trusteeship Setup of AIF facility unit at IFSC,  GIFT City (Gujarat International Finance Tec-City), Gandhinagar.

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 earning (NFEE) separately by AIF.