Alternative Investment Funds (AIFs)
SEBI Regulatory Framework
AIFs are privately pooled investment vehicles that collect funds from investors for investing in accordance with a defined investment policy. SEBI's AIF Regulations (2012) categorise AIFs into three categories. Category I AIFs include venture capital funds, social venture funds, SME funds, and infrastructure funds, and receive government incentives. Category II covers private equity, debt funds, and fund of funds. Category III includes hedge funds using complex strategies. The FoF invests exclusively in Category I and II AIFs.
- SEBI AIF Regulations: 2012 (amended multiple times, most recently 2024)
- Minimum investment: Rs 1 crore for investors; Rs 25 crore minimum corpus for AIFs
- Category I AIFs: receive specific incentives/concessions from SEBI, government, or regulators
- Total AIF commitments in India: over Rs 12 lakh crore (as of March 2025)
- Fund of Funds structure: Government (SIDBI) invests in AIFs, which invest in startups -- multiplier effect
- Tax treatment: Category I and II AIFs get pass-through status (income taxed at investor level)
● Tracked since February 14, 2026 · last seen May 12, 2026 · updates as the daily brief publishes
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