An alternative investment fund (AIF) is a privately pooled investment vehicle that collects funds from investors for investing according to a defined strategy. There are three categories of AIFs in India with different investment conditions and regulations. Most AIFs are set up as trusts due to lower compliance requirements compared to companies or limited liability partnerships. Key parties involved in a typical AIF structure include the sponsor, trustee, manager, investors and portfolio entities. The presentation discusses legal structures for AIFs, registration requirements, ongoing compliance and recent trends in foreign investments in AIFs.
This document discusses Angel Tax and exemptions for startups in India. It defines Angel Tax as the income tax payable on capital raised by unlisted companies through share premium. Startups recognized by DPIIT are exempt from Angel Tax if total paid up capital and share premium is less than Rs. 25 crores and certain other conditions are met. These include restrictions on how funds can be invested. Non-compliance results in the premium being taxed at 200% as unexplained income. The document recommends relaxing some investment restrictions and removing the 200% penalty for startups.
The document summarizes key changes brought about by India's new Overseas Direct Investment Guidelines. It introduces definitions for key terms like foreign entity, overseas direct investment, and overseas portfolio investment. It liberalizes regulations by removing restrictions on investment write-offs and allowing more entities like unlisted companies and individuals to undertake overseas investments. The guidelines also expand the scope of permitted overseas investments in sectors like financial services. Overall, the changes aim to simplify regulations and promote ease of doing business for overseas investments by Indian persons and entities.
Explore the Securities and Exchange Board of India's (SEBI) Alternative Investment Fund (AIF) Regulation, governing India's investment landscape, strategies, and compliance requirements. Stay informed and navigate the complexities of AIFs seamlessly.
Income tax appeals and Revision by abhishek muraliAbhishek Murali
Art of Preparation and Presentation of Income Tax Appeals by CA Abhishek Murali, Direct Tax Committee Chairman of Southern India of the ICAI. Presented with Hon'ble Pr.CCIT of Tamil Nadu and Puducherry, Mr.Sushil Khumar, IRS.
Comprehensive preparation and process of Appeals
This document provides an overview of deemed dividend under section 2(22)(e) of the Indian Income Tax Act of 1961. It discusses the legislative history, defines key terms like loan and advance, and outlines the scope and applicability of section 2(22)(e). Specifically, it notes that section 2(22)(e) treats certain payments made by closely held companies to shareholders as deemed dividends, including loans or advances unless lending is a substantial part of the company's business. It also discusses the types of companies and shareholders that fall under this section, as well as certain exclusions.
This document discusses Angel Tax and exemptions for startups in India. It defines Angel Tax as the income tax payable on capital raised by unlisted companies through share premium. Startups recognized by DPIIT are exempt from Angel Tax if total paid up capital and share premium is less than Rs. 25 crores and certain other conditions are met. These include restrictions on how funds can be invested. Non-compliance results in the premium being taxed at 200% as unexplained income. The document recommends relaxing some investment restrictions and removing the 200% penalty for startups.
The document summarizes key changes brought about by India's new Overseas Direct Investment Guidelines. It introduces definitions for key terms like foreign entity, overseas direct investment, and overseas portfolio investment. It liberalizes regulations by removing restrictions on investment write-offs and allowing more entities like unlisted companies and individuals to undertake overseas investments. The guidelines also expand the scope of permitted overseas investments in sectors like financial services. Overall, the changes aim to simplify regulations and promote ease of doing business for overseas investments by Indian persons and entities.
Explore the Securities and Exchange Board of India's (SEBI) Alternative Investment Fund (AIF) Regulation, governing India's investment landscape, strategies, and compliance requirements. Stay informed and navigate the complexities of AIFs seamlessly.
Income tax appeals and Revision by abhishek muraliAbhishek Murali
Art of Preparation and Presentation of Income Tax Appeals by CA Abhishek Murali, Direct Tax Committee Chairman of Southern India of the ICAI. Presented with Hon'ble Pr.CCIT of Tamil Nadu and Puducherry, Mr.Sushil Khumar, IRS.
Comprehensive preparation and process of Appeals
This document provides an overview of deemed dividend under section 2(22)(e) of the Indian Income Tax Act of 1961. It discusses the legislative history, defines key terms like loan and advance, and outlines the scope and applicability of section 2(22)(e). Specifically, it notes that section 2(22)(e) treats certain payments made by closely held companies to shareholders as deemed dividends, including loans or advances unless lending is a substantial part of the company's business. It also discusses the types of companies and shareholders that fall under this section, as well as certain exclusions.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
This document summarizes the rules for acquisition and transfer of securities by non-residents in India. It outlines various scenarios for the transfer of capital instruments of an Indian company between residents and non-residents, including transfers by NRIs, OCIs, overseas corporate bodies, and residents. It specifies the applicable entry routes, sectoral caps, pricing guidelines, and documentation requirements for such transfers. The document also provides definitions for key terms like non-resident Indian, overseas citizen of India, and capital instruments.
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
The document discusses the composition and requirements for the Nomination and Remuneration Committee according to the Companies Act 2013 and SEBI regulations. It notes some potential contradictions between the Act, which requires the committee for all listed companies, and Clause 49 of listing agreements, which provides some exemptions. Specifically, it examines whether the Act takes precedence over Clause 49. It also outlines penalties for non-compliance with the Act's provisions for this committee.
Objectives & Agenda :
To know when an appeal can be made before a Commissioner, High Court and Supreme Court. To gain knowledge regarding the pre-requisites for filing an appeal. To understand the provisions relating to the fines, penalties and the time limit in an appeal. To gain insight regarding the procedure followed during an appeal.
Deposits under companies act 2013 version 5.0CA. Pramod Jain
Namaste
Pursuant to few amendments in Companies (Acceptance of Deposit) Rules 2014, the document Deposits under Companies Act 2013 has been updated as Version 5.0. The same is now available at http://expertspanel.in/?qa=blob&qa_blobid=10452760937625173148 . I hope the same is of use.
Kindly share this with other professionals too, as it may be of use to them too.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
Introduction
Definition of baggage
General prohibition
Statutory provision
Baggage Rules
Article mentioned in annex
Baggage rules
Types of Passenger
General free allowence
Provisional return to India
Jewelry
Tourist
Transfer of residence
Problems on baggage
Problem
Solution
Remark
Deductions to be made under Income Tax Act, 1961Amandeepbal60
This document discusses various deductions that can be made under Chapter VI of the Income Tax Act of 1961 when computing total income in India. It explains the meaning of gross total income and how deductions are allowed from it. It then provides details on deductions that can be claimed under sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGB for investments made in specified savings instruments, insurance premiums paid, contributions to pension funds, medical expenditures, education loans, donations to charitable funds, house rent paid and contributions to political parties respectively. It discusses the eligibility criteria and limits or amounts that can be claimed as deductions under these
The document provides information on joint ventures and foreign collaborations in India. It defines a joint venture as an association between two or more business entities who combine resources for common goals. Benefits of joint ventures include spreading costs and risks, improving access to finance, technology, and new markets. Recent examples of joint ventures in India are provided. Major issues in structuring joint ventures like capital structure, governance, intellectual property rights are highlighted. India's liberal foreign direct investment policy allowing up to 100% foreign ownership in most sectors is summarized. The legal and regulatory framework governing joint ventures is outlined.
The document discusses the exemptions available under Regulation 10 of SEBI (SAST) Regulations, 2011 for inter se transfer of shares. It provides five categories of inter se transfers that are exempt from open offer requirements: 1) between immediate relatives, 2) between promoters for over 3 years, 3) between qualifying parties such as subsidiaries of the same holding company, 4) between persons acting in concert for over 3 years, and 5) between shareholders acting in concert for over 3 years and companies wholly owned by them. It outlines various conditions for availing these exemptions including pricing and disclosure requirements.
Edelweiss Prime Brokerage Services provides an integrated suite of services for asset managers, including fund setup advisory, securities custody and clearing, fund accounting, research and execution services. The document describes Edelweiss' offerings for alternative investment funds, which include fund registration assistance, custodial services, research coverage of over 500 companies, and investor management services like drawdown tracking and statements. Edelweiss aims to be a one-stop-shop for asset managers seeking support across the lifecycle of their funds.
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
The document discusses various types of income that are exempted from income tax in India under sections 10, 10AA, 11, 12, 12A, 13 and 13A of the Income Tax Act. It provides details on 15 specific types of exempted income, including agricultural income, family pension received by HUF members, partner's share of firm's profit, interest received by non-residents, leave travel concession, foreign government employee's salary, death-cum-retirement gratuity, pension received by government employees, leave salary, and amounts received from provident funds. The document is intended to explain the concept of exempted income under the Income Tax Act for tax payers and students.
CA Sudha G. Bhushan presented on the topic of Non-Resident Indians. She discussed the definition of a non-resident according to regulations and relevant authorities such as RBI and SEBI. She also covered the differences between resident and non-resident individuals, examples to illustrate residency status, and facilities available to Non-Permanent Residents in India such as bank account types like NRO and NRE accounts. Restrictions on dealings in foreign exchange by residents and non-residents were also summarized.
The document summarizes key aspects of the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 in India. It discusses (1) the background and objectives of the bill which are to tax undisclosed foreign income and assets and punish those generating illegitimate money, (2) key features of the bill including penalties for concealment of foreign income/assets and criminal liability for tax evasion, and (3) important definitions related to the bill such as "resident", "undisclosed foreign income and asset", and rules around computing total undisclosed income and disallowing expenses/losses against such income.
International Financial Services Centre Authority (Fund Management) Regulati...Beacon Trusteeship Limited
The International Financial Services Centres Authority (Fund Management) Regulations, 2022 have been published by the International Financial Services Centres Authority (IFSCA).
.
To know more visit us now:
www.beacontrustee.co.in
With a view to develop the framework for investment funds in IFSC, the International Financial Services Centre Authority (IFSCA) has proposed to issue IFSCA (Fund Management) Regulations, 2022 (Draft Fund Management Regulations/Draft Regulations), based on global best practices, focusing on the ease of doing business.
Capital gains tax is levied on profits arising from the transfer of a capital asset. For gains to be taxed under capital gains, there must be a capital asset that is transferred, resulting in profits. Any profits exempted under sections 54-54G are not taxed. Capital assets include all property except certain exceptions like stock-in-trade. Short term capital gains arise from assets held for 36 months or less, while long term gains are for assets held longer. Indexation of cost is used to arrive at capital gains for long term assets by factoring inflation. Profits are taxed differently based on whether the gain is short term or long term.
This document summarizes the rules for acquisition and transfer of securities by non-residents in India. It outlines various scenarios for the transfer of capital instruments of an Indian company between residents and non-residents, including transfers by NRIs, OCIs, overseas corporate bodies, and residents. It specifies the applicable entry routes, sectoral caps, pricing guidelines, and documentation requirements for such transfers. The document also provides definitions for key terms like non-resident Indian, overseas citizen of India, and capital instruments.
This document provides an overview of various deductions that can be claimed under sections 80C to 80U of the Indian Income Tax Act of 1961. It explains key deductions such as those for approved savings and investments of up to Rs. 1.5 lakhs under section 80C, contributions to pension schemes under 80CCD, medical and education expenses under 80D, 80DD, 80E, and donations to certain funds under 80G. It also outlines eligibility criteria and limits for claiming these common tax deductions in India.
Brief overview of Foreign Portfolio Investments - impact on the economy and impact by the economic variables, with special statistics & focus on India.
The document discusses the composition and requirements for the Nomination and Remuneration Committee according to the Companies Act 2013 and SEBI regulations. It notes some potential contradictions between the Act, which requires the committee for all listed companies, and Clause 49 of listing agreements, which provides some exemptions. Specifically, it examines whether the Act takes precedence over Clause 49. It also outlines penalties for non-compliance with the Act's provisions for this committee.
Objectives & Agenda :
To know when an appeal can be made before a Commissioner, High Court and Supreme Court. To gain knowledge regarding the pre-requisites for filing an appeal. To understand the provisions relating to the fines, penalties and the time limit in an appeal. To gain insight regarding the procedure followed during an appeal.
Deposits under companies act 2013 version 5.0CA. Pramod Jain
Namaste
Pursuant to few amendments in Companies (Acceptance of Deposit) Rules 2014, the document Deposits under Companies Act 2013 has been updated as Version 5.0. The same is now available at http://expertspanel.in/?qa=blob&qa_blobid=10452760937625173148 . I hope the same is of use.
Kindly share this with other professionals too, as it may be of use to them too.
The document discusses various types of income that are exempt from income tax under the Income Tax Act in India. It provides details on exemptions for agricultural income, HUF income, partner's share of profit, leave travel concession, pension, leave salary, voluntary retirement compensation, house rent allowance, special allowances like transport allowance, interest income from certain securities, income of employee welfare funds, income of the Employee State Insurance Fund, and a minor child's income. It also discusses tax exemptions that apply specifically for salaried employees, such as exemptions on pension income, leave encashment, gratuity payments, and certain allowances.
Profit & Gains from Business or Profession.RAJESH JAIN
This document provides an overview of income from business and profession under the Indian Income Tax Act. It defines business and profession, outlines the key points and basis of charge for income from business/profession. It also discusses the computation of income, specific deductions allowed, depreciation rules and amounts that are not deductible. The key information includes definitions of business and profession, income includes profits and losses, relevance of accounting method, and that income from illegal businesses is taxable.
Introduction
Definition of baggage
General prohibition
Statutory provision
Baggage Rules
Article mentioned in annex
Baggage rules
Types of Passenger
General free allowence
Provisional return to India
Jewelry
Tourist
Transfer of residence
Problems on baggage
Problem
Solution
Remark
Deductions to be made under Income Tax Act, 1961Amandeepbal60
This document discusses various deductions that can be made under Chapter VI of the Income Tax Act of 1961 when computing total income in India. It explains the meaning of gross total income and how deductions are allowed from it. It then provides details on deductions that can be claimed under sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGB for investments made in specified savings instruments, insurance premiums paid, contributions to pension funds, medical expenditures, education loans, donations to charitable funds, house rent paid and contributions to political parties respectively. It discusses the eligibility criteria and limits or amounts that can be claimed as deductions under these
The document provides information on joint ventures and foreign collaborations in India. It defines a joint venture as an association between two or more business entities who combine resources for common goals. Benefits of joint ventures include spreading costs and risks, improving access to finance, technology, and new markets. Recent examples of joint ventures in India are provided. Major issues in structuring joint ventures like capital structure, governance, intellectual property rights are highlighted. India's liberal foreign direct investment policy allowing up to 100% foreign ownership in most sectors is summarized. The legal and regulatory framework governing joint ventures is outlined.
The document discusses the exemptions available under Regulation 10 of SEBI (SAST) Regulations, 2011 for inter se transfer of shares. It provides five categories of inter se transfers that are exempt from open offer requirements: 1) between immediate relatives, 2) between promoters for over 3 years, 3) between qualifying parties such as subsidiaries of the same holding company, 4) between persons acting in concert for over 3 years, and 5) between shareholders acting in concert for over 3 years and companies wholly owned by them. It outlines various conditions for availing these exemptions including pricing and disclosure requirements.
Edelweiss Prime Brokerage Services provides an integrated suite of services for asset managers, including fund setup advisory, securities custody and clearing, fund accounting, research and execution services. The document describes Edelweiss' offerings for alternative investment funds, which include fund registration assistance, custodial services, research coverage of over 500 companies, and investor management services like drawdown tracking and statements. Edelweiss aims to be a one-stop-shop for asset managers seeking support across the lifecycle of their funds.
The document discusses India's Goods and Services Tax (GST) policies and regulations related to input tax credit. Key points include:
- Under GST, input tax credit is available for goods, services, and capital goods used in the course of business. This is a significant expansion of credit compared to earlier tax systems.
- Credit can be claimed by registered businesses against central GST, state GST, integrated GST, and Union territory tax paid on business purchases.
- Certain documents like tax invoices and bills of entry must be possessed, and payment must be made to the supplier within 180 days, for credit to be claimed.
- There are also time limits, apportionment and reversal
The document discusses various types of income that are exempted from income tax in India under sections 10, 10AA, 11, 12, 12A, 13 and 13A of the Income Tax Act. It provides details on 15 specific types of exempted income, including agricultural income, family pension received by HUF members, partner's share of firm's profit, interest received by non-residents, leave travel concession, foreign government employee's salary, death-cum-retirement gratuity, pension received by government employees, leave salary, and amounts received from provident funds. The document is intended to explain the concept of exempted income under the Income Tax Act for tax payers and students.
CA Sudha G. Bhushan presented on the topic of Non-Resident Indians. She discussed the definition of a non-resident according to regulations and relevant authorities such as RBI and SEBI. She also covered the differences between resident and non-resident individuals, examples to illustrate residency status, and facilities available to Non-Permanent Residents in India such as bank account types like NRO and NRE accounts. Restrictions on dealings in foreign exchange by residents and non-residents were also summarized.
The document summarizes key aspects of the Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 in India. It discusses (1) the background and objectives of the bill which are to tax undisclosed foreign income and assets and punish those generating illegitimate money, (2) key features of the bill including penalties for concealment of foreign income/assets and criminal liability for tax evasion, and (3) important definitions related to the bill such as "resident", "undisclosed foreign income and asset", and rules around computing total undisclosed income and disallowing expenses/losses against such income.
International Financial Services Centre Authority (Fund Management) Regulati...Beacon Trusteeship Limited
The International Financial Services Centres Authority (Fund Management) Regulations, 2022 have been published by the International Financial Services Centres Authority (IFSCA).
.
To know more visit us now:
www.beacontrustee.co.in
With a view to develop the framework for investment funds in IFSC, the International Financial Services Centre Authority (IFSCA) has proposed to issue IFSCA (Fund Management) Regulations, 2022 (Draft Fund Management Regulations/Draft Regulations), based on global best practices, focusing on the ease of doing business.
Portfolio Management Services (PMS) allow individual investors to have a professionally managed portfolio tailored to their specific investment goals. When investing in PMS, investors own individual securities rather than units of a fund. PMS accounts require a minimum investment of Rs. 5 lacs and charge fees including management charges of 1-3% and sometimes performance fees if returns exceed a threshold. Registered PMS providers in India include Geojit BNP Paribas, ICICI Prudential, and Motilal Oswal.
Presentation on Introduction to Mutual Funds Investing.pdfAdityaRoy838557
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a professionally managed, diversified portfolio with the potential for growth or income depending on the type of fund. Risk and potential returns vary depending on the fund's investment objectives and strategy.
Presentation on Introduction to Mutual Funds Investing.pdfpoonamshinde64
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a way to diversify their investments and earn returns on their money.
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a professionally managed, diversified portfolio with the potential for growth or income depending on the type of fund. Risk and potential returns vary depending on the fund's investment objectives and strategy.
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a professionally managed, diversified portfolio with the potential for growth or income depending on the type of fund. Risk and potential returns vary depending on the fund's investment objectives and strategy.
Mutual funds are investment vehicles that pool money from many investors and invest it in stocks, bonds, and other securities. An asset management company manages the fund's portfolio according to the fund's stated objectives. Investors can invest in mutual funds directly from the fund company or through a financial advisor. Mutual funds offer investors a professionally managed, diversified portfolio with the potential for growth or income depending on the type of fund. Risk and potential returns vary depending on the fund's investment objectives and strategy.
Mutual funds pool together money from investors to invest in stock markets and other assets. This allows small investors to participate in a more diversified portfolio than they could on their own. Key players in mutual funds include the sponsor who establishes the fund, the asset management company that manages the investments, trustees who oversee the fund, and unit holders who are the beneficiaries. Benefits of mutual funds include diversification of risk, professional management, lower costs than direct investing, liquidity, and transparency.
This document provides an overview of investment fund structures in India and compliance requirements. It discusses various types of fund vehicles like offshore and onshore funds. It also covers key areas like choice of fund jurisdiction, documentation requirements, registration and approvals with Indian regulators, ongoing compliance, and certification needs. The presentation further elaborates on topics like different types of investors in India, tax implications, and investment structures for foreign venture capital investors.
The International Financial Services Centres Authority (Investment Trust) Regulations, 2022 have been published by the International Financial Services Centres Authority (IFSCA)
Foreign institutional investors are entities established outside of India that propose investments in India. They must register with the Securities and Exchange Board of India and the Reserve Bank of India. Common foreign institutional investors include pension funds, mutual funds, and insurance companies. They primarily invest through participatory notes and are usually attracted to developing economies like India that offer higher growth potential. Regulations limit foreign institutional investment in individual companies to 24% of paid-up capital but this can be raised to 20-24% with board approval.
A mutual fund allows investors to pool their money together into a portfolio that is professionally managed. The document discusses the concept and operation of mutual funds, the history of mutual funds in India, the various types of mutual fund schemes categorized by constitution, investment objective, and nature of investments. It also covers the advantages of mutual funds such as professional management, diversification, convenience, liquidity, and tax benefits.
The document discusses capital markets, which are markets for long-term debt and equity shares. Capital markets include primary markets where securities are first issued to investors through IPOs/FPOs, and secondary markets like stock exchanges where existing securities are traded. It then discusses trends in the Indian capital markets such as increased role of institutions, introduction of derivatives, globalization, and modernization through increased use of technology.
REITs allow individuals to invest in large-scale income-producing real estate assets through the purchase of REIT units. A REIT owns and operates properties like offices, malls, apartments, and warehouses primarily to generate rental income. In India, REITs must invest at least 80% of assets in completed income-generating properties and distribute at least 90% of cash flows as dividends. Key regulations cover eligibility of sponsors, managers and trustees, investment conditions, valuation requirements, and distribution and taxation policies. REITs offer smaller investors an opportunity to invest in commercial real estate.
The document discusses the legal and regulatory framework for mutual funds in India. It outlines the roles of key regulators like SEBI and describes SEBI's regulations around mutual funds which cover areas like scheme documents, risk management, disclosures, advertising and investment restrictions. The regulations aim to protect investors and ensure the orderly development of the financial markets.
Private equity involves investing in private companies not listed on a stock exchange. Firms invest in underperforming companies with high growth potential to develop new products/technologies or expand working capital.
Private equity has limited liquidity and follows a high risk, high return objective. Funds can sell company stakes after the minimum investment period to realize gains in the non-transparent private equity market. Venture capital, angel investors, leveraged buyouts, growth capital, and mezzanine capital are types of private equity. Regulations like SEBI AIF Regulations 2012 govern private equity in India. Setting up funds in tax havens like Mauritius, Singapore, Ireland etc. can help minimize double taxation.
SEBI regulates the securities market in India with the objectives of protecting investors, promoting market development, and regulating market operations. SEBI oversees primary and secondary markets, registers and monitors intermediaries like mutual funds and brokers, prohibits unfair trading practices, promotes investor education, and regulates substantial acquisitions and mergers. It oversees various aspects of the market like entry norms for listings, disclosure requirements, book building processes, and price stabilization measures. SEBI also regulates foreign institutional investments in India through registration of FIIs and monitoring of investment ceilings.
The document discusses the structure and regulations of mutual funds in India. It describes key constituents like sponsors, trustees, asset management companies (AMCs), custodians, registrar and transfer agents (RTAs). It explains the role of regulators like SEBI, RBI, and industry body AMFI. The legal structure involves setting up a trust to manage the funds. Trustees oversee compliance while AMCs handle day-to-day operations.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
Introducing BONKMILLON - The Most Bonkers Meme Coin Yet
Let's be real for a second – the world of meme coins can feel like a bit of a circus at times. Every other day, there's a new token promising to take you "to the moon" or offering some groundbreaking utility that'll change the game forever. But how many of them actually deliver on that hype?
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
2. What is an AIF?
2
What is an Alternative Investment Fund? Are there any exemptions from registration?
“Alternative Investment Fund” means any fund established or incorporated in India in the form of a trust or a
company or a limited liability partnership or a body corporate which,
(i) is a privately pooled investment vehicle which collects funds from investors, whether Indian or foreign, for
investing it in accordance with a defined investment policy for the benefit of its investors; and
(ii) is not covered under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, Securities
and Exchange Board of India (Collective Investment Schemes) Regulations, 1999 or any other regulations of the
Board to regulate fund management activities.
Exemptions:
• Family trusts
• ESOP trusts
• Employee welfare trusts
• Holding companies
• Securitization trusts
3. Legal structure for an AIF
3
Criteria Trust Company LLP
Compliance Low High Moderate
Client Confidentiality High Moderate Low
Market Practice More than 97% of the AIFs
are set up as Trusts
Minimal Less than 3% AIFs are set
up as LLP
Acceptability with Investors
and Distributors
High Low Moderate
Ease of Operations High Low Moderate
Mitigation of GST on
Management Fee
Debatable No Yes
4. 4
Sponsor
Trustee (In-
house or third
party)
Investment Management
Agreement
AIF
(Trust/LLP
/Company)
Trust Deed (if set
up as Trust)
Portfolio entities
Investment
Manager
Investors
(Domestic
& Offshore)
Contribution
Agreements
Investments in
Securities
Employees
or Employee
Benefit Trust
Carry Units
Carry distribution
Typical AIF Structure
5. 5
Criteria Category I AIF Category II AIF Category III AIF
Categorization - Angel Fund
- Venture Capital Funds;
- SME Funds;
- Social Venture Funds;
and
- Infrastructure Funds.
- Private Equity Funds;
- Structured Credit Funds;
- Debt Funds;
- Real Estate Funds.
- Long only Funds;
- Long-short Funds;
- Hedge Funds and any
other Funds with diverse
and complex trading
strategies.
SEBI Registration Fees Rs.5,00,000 (Rs. 2,00,000
for Angel Fund)
Rs.10,00,000 Rs.15,00,000
Continuing Interest by
Sponsor / Manager
Lower of the following
amounts:
- 2.5% of corpus; or
- Rs.5 crores (Rs. 50
lakhs for Angel Fund)
Lower of the following
amounts:
- 2.5% of corpus; or
- Rs.5 crores
Lower of the following
amounts:
- 5% of corpus; or
- Rs.10 crores
Ability to invest in Listed
Securities
Limited ability for listed
investments. Different norms
across sub-categories.
Upto 49.99% investments
can technically be done in
listed securities.
Investments upto 100% can
be made in listed securities.
Overall
restrictions/Compliances
Moderate Low High
Categories of AIF – Which one to Select ? Part -1
6. 6
Criteria Category I AIF Category II AIF Category III AIF
QIB Status Yes
[Also, no lock in for
investment made prior to IPO
if held for at least one year]
Yes
[Also, no lock in for investment
made prior to IPO if held for at
least one year]
Yes
Leverage No No Yes (upto 2X leverage /
100% additional exposure
permitted)
Investment by DFIs,
Insurance Companies, Banks
Yes, subject to compliance
with prescribed norms
Yes, subject to compliance with
prescribed norms
No
Diversification Not more than 25% of the Investible Funds can be invested in
a single Portfolio Entity.
Not more than 10% of the
Investible Funds can be
invested in a single
Portfolio Entity.
Close Ended/Open Ended Close Ended Close Ended Open or Close Ended
Categories of AIF – Which one to Select ? Part - 2
7. Certain thresholds under AIF Regulations
7
• Each AIF Scheme should have a corpus of at least Rs. 20 crores (Rs. 5 crores for Angel Fund)
• Each investor in AIF should commit to invest at least Rs. 1 crore (Rs. 25 lakhs for Angel Fund)
• An employee or director of the Manager of AIF can invest Rs. 25 lakhs or more
• An employee of the Manager participating in the profits/carry of the AIF need not make any investment
• Following can invest jointly in an AIF, wherein each joint investor contributes and aggregate investment is at least Rs. 1
crore
• Investor and his/her spouse
• Investor and his/her parent
• Investor and his/her daughter/son
• No AIF Scheme can have more than 1,000 investors (200 investors for Angel Fund)
• Cat-I AIF & Cat-II AIF shall have minimum tenue of 3 years (maximum 5 years for Angel Fund)
8. AIF Registration
8
Eligibility Criteria for AIF Registration:
• MOA/Trust Deed/Partnership Deed permits carrying on the activity of AIF
• Trust Deed/Partnership Deed to be registered under respective governing laws
• MOA/Trust Deed/Partnership Deed to prohibit making an invitation to the public to subscribe its securities
• The Applicant, Sponsor and Manager are “fit and proper” based on the criteria specified in Schedule II of the Securities and
Exchange Board of India (Intermediaries) Regulations, 2008
• The key investment team of the investment manager of the AIF should have adequate experience with at least 1 (one) key
personnel having not less than 5 years of relevant experience
• Manager & Sponsor has the necessary infrastructure and manpower to discharge its activities
• The Applicant to clearly describe investment objective, investment strategy, proposed corpus, tenure and target investors
Process of registration:
• Self-registration on SEBI online portal and online payment of Rs. 1 lakh application fee
• On receipt of login and password, uploading of Form A on SEBI portal along with final PPM and copy of executed Trust Deed and
requisite declarations/undertakings
• The entire registration process generally takes 2 to 3 months
9. AIF Governance related – Part 1
9
Matters requiring three-fourth majority Investor vote in value
• To approve winding up of the Fund;
• To approve the extension of limit for valuation by the valuer from once every six months (for Cat-I/Cat-II AIF) to once every
twelve months;
• To approve in-specie distribution by the Fund;
• To approve investment by the Fund in an Associate; and
• To approve any material change (i.e. changes in fundamental attributes of the Fund) in accordance with the Regulations.
Matters requiring two-third majority Investor vote in value
• To extend the Term of the Fund; and
• To approve material change in the investment strategy.
• The Sponsor and Manager of the Alternative Investment Fund shall act in a fiduciary capacity towards its investors and shall
disclose to the investors, all conflicts of interests as and when they arise or seem likely to arise
• Change in control of Sponsor or Manager with prior SEBI approval
• Co-investment in an investee company by a Manager or Sponsor shall not be on terms more favourable than those offered to the
Alternative Investment Fund
10. AIF Governance related – Part 2
10
• To appoint a custodian if corpus is more than Rs. 500 crores – compulsory for Cat-IIIAIF
• Disclosure of any fees charged to the AIF or any investee company by an associate of the Manager or Sponsor
• Disclosure within 180 days of end of the year in respect of financial information about portfolio entities and material
risks and how such risks are managed
• Cat-I AIF and Cat-II AIF to undertake valuation of their investments, at least once in every six months, by an
independent valuer. Cat-III is required to disclose NAV for each quarter for closed-end fund and monthly for open-
end fund.
• Reporting to SEBI
• Cat-I AIF, Cat-II AIF and Cat-III AIF (that do not undertake leverage) are required to file quarterly report with
SEBI within 7 days of end of quarter. Cat-III AIF that undertakes leverage is required to file report with SEBI
monthly. All reports to be filed electronically through SEBI portal.
• Compliance Test Report to be submitted by the Manager with Trustee within 30 days of end of the financial
year and Trustee/Sponsor to report to SEBI any non-compliance observed.
11. 11
• One Trust / One Scheme V/s One Trust / Multiple Scheme Issue – Ring Fencing and Bankruptcy remoteness concerns.
• Structuring the AIF vehicle as a Trust v. LLP?
• Exceptions to blind pool concept in a AIF Scheme – excuse investor?
• Whether an AIF can give loan?
• Whether Investment Manager & Sponsor regulated by SEBI in view of FDI capitalisation norms for unregulated financial
activities?
• Key Issues under Category III AIF (Long Only Funds, Long Short Funds and Hedge Funds)
o Can a CAT III AIF have both open ended and closed ended schemes (in light of SEBI’s recent Informal Guidance)?
o Permissibility of Redemption / Exit Option to Investor in a Close Ended Fund
o Grey areas with respect to investments by Cat III AIFs with foreign money and Cat III AIF Manager/Sponsor with foreign
ownership/control
• Category II AIF – (Real Estate Fund, Structured Credit Fund and Debt Fund)
o How to ensure compliance with unlisted v. listed securities ratio in the portfolio (SEBI requires portfolio to be more in
unlisted securities).
Certain Grey Areas & Structuring Issues
12. Foreign Investments in AIFs – Key Considerations & Recent Trends
• 100% FDI is permitted under automatic route in all the Categories of AIFs.
• In terms of FEMA20 Regulations, if the Sponsor and Manager (both) are “Owned and Controlled” by Indian resident
citizens, then the AIF does not need to follow FDI downstream investment norms.
• The extent of foreign investment in the corpus of the AIF will not be a factor to determine as to whether downstream
investment by the AIF is foreign investment or not.*
• Downstream investment by an AIF that is reckoned as foreign investment shall have to conform to the sectoral caps and
conditions / restrictions, if any, as applicable to the company in which the downstream investment is made.
*As a special condition, a Category III AIF with any foreign investment shall make portfolio investment in only those securities or instruments
in which a FPI is allowed to invest under the FEMA20 Regulations.
12
13. 13
• Contributor Giveback;
• Indemnity;
• Removal of the Investment Manager for “Cause” or “without Cause”;
• “Most Favoured Nation” Rights;
• Information Rights for the Contributors;
• Right to appoint member on IC/Advisory Board
• Distribution Waterfall, Clawback mechanisms;
• Quantum of Fees/Expenses and manner of charging the same.
• Key Man Clause
• Co-Investment Rights
Key Contractual Provisions in Structuring AIF Documents - Part 1
14. 14
• Conflict of Interest policy
• Investment Guidelines: Environmental, Social and Governance (ESG) Policy and Anti-Corruption
• Valuation Methodology
• Follow-on investment
• Legal Opinion on Enforceability
• Compensatory Contribution or Premium v. NAV based subscriptions
• Whether Warehoused Investments to be transferred to Fund at Cost or FMV – Whether issuance of
units in lieu of warehoused Investments possible
• Investments in Associate Entities – Approval to be taken at the time of each Investment ? Whether
deemed or specific?
• Ability of launch successor fund
Key Contractual Provisions in Structuring AIF Documents - Part 2
15. Foreign Investments in AIFs – Key Considerations & Recent Trends (2/2)
16
AIF Route – New Alternative to FDI, FPI & ECB?
AIF Regime alternative to FDI regime – Since offshore investors can invest in an AIF under automatic route and AIF with an
Indian owned and controlled manager and sponsor is not required to follow FDI norms (regardless of quantum of foreign
investment in AIF which can be upto 100%), hence it’s becoming a viable option for facilitation foreign investments which
may otherwise not be permissible/viable under FDI route given the pricing and type of securties related limitations under FDI
route.
AIF Regime alternative to FPI regime for debt investments & ECB - With the corporate debt limits insufficient for FPIs and
future uncertainty on availability of limits, the AIF as a vehicle has alternatively been used to route such money in Indian
entities. An overseas pooling structure can be set up which can invest in AIF under an automatic route and in turn AIF can take
exposure in listed as well as unlisted debt securities without any restrictions on limits or end use requirements. Also the
coupons and principal amounts received from the investee entities is fully repatriable to overseas investors. AIF regime has
also become an alternative for ECB regime which has too many restrictions pertaining to class of lenders, end use restrictions,
limit on coupon payout etc.
AIF Regime alternative to FPI regime in listed securities – If for some regulatory reason, FPI registration may not been
obtained or is not feasible, then foreign investors can invest under automatic route in a Category - III AIF which in turn can
invest in securities listed on stock markets as well as in IPOs.
16. Foreign Investments in AIFs – Key Considerations & Recent Trends (2/2)
• Singular India Opportunities Trust – AIFs cannot convert existing open ended scheme to close ended scheme or vice
versa
• Peninsula Brookfield India Real Estate Fund Trust - All AIFs shall mandatorily disclose disciplinary history of AIF,
sponsor, manager and their directors/partners/ promoters and associates in their placement memorandum. Information
pertaining to all the associates outside India, where the director, trustee, partner, sponsor, manager of AIF holds either
individually or collectively more than 15 % of paid-up equity share capital or partnership interest will have to be reported to
SEBI.
• India Realty Excellence Fund – The investment limit of 25% of the investible funds under Regulation 15(c) must be
complied with through out the life cycle of the Fund or the scheme. With regard to investments by Cat II funds primarily in
unlisted securities since SEBI has not quantified the investment threshold, it will be construed to mean that investments in
unlisted securities should be higher than other investments.
• JM Financial Ltd - SEBI noted that the AIF Regulations permit AIFs to make temporary investments from un-invested
portions of investible funds, since such deployment of funds is in the interest of the investors. SEBI observed that the same
rationale should also be applicable to the deployment of distribution proceeds in temporary investments pending distributions
to the investors. Therefore, SEBI observed that such investment of distribution proceeds in temporary investments pending the
distribution of such proceeds to their investors was permitted under AIF.
15
17. DEVELOPMENT OF AIFS IN INDIA
1996
2014
Enactment of VCF Regulations, 1996
2011
Concept paper for proposed AIF Regulations
2012
Enactment of AIF
Regulations, 2012
2013
Rules for Angel Fund
introduced
•Material Changes in the
terms of AIF – Approval
of 75% of Investors
•Exit option to investors
dissenting for increase
in fees/ expenses
2015
•FDI in AIF through
automatic route
18. 2018
2017
2016
•CAT III AIF permitted
to invest in commodities
derivatives
•Online registration
platform for AIFs
introduced
•Guidelines for AIF in
IFSC introduced
• Further relaxation of
rules for Angel funds.
•Relaxation of rules for
Angel funds.
19. Glossary & Notes
19
TERM DESCRIPTION
FDI Foreign Direct Investment
IPO Initial Public Offering
FPI Foreign Portfolio Investor
FEMA 20 Foreign Exchange Management (Transfer or Issue of Securities by a Person Resident Outside India)
Regulations, 2017
IRDA Insurance Regulatory and Development Authority of India
RBI Reserve Bank of India
SEBI Securities and Exchange Board of India
AIF Regulations Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 as
amended from time to time
20. Disclaimer
• This Presentation is not exhaustive and deals with specific areas and provides our views on the matters
discussed herein and is not to be read as an opinion with respect to any factual or legal matters. The
analysis provided herein is limited to the laws of India in force as of date and no opinion is expressed or
should be implied as to the laws notified hereinafter or of any other jurisdiction/s.
• The Presentation is prepared by us on the basis of our interpretation of the applicable legal provisions.
Any person relying on this Presentation shall be fully responsible / liable for any decision taken on the
basis of this Presentation and we would not be held responsible under any circumstances.
• Our views/observations/conclusions stated in this Presentation are not binding on any authority or court,
and so, no assurance is given that a position contrary to that expressed herein will not be asserted by any
statutory/regulatory authority and ultimately sustained by a relevant authority and/or a court of law. The
data provided in this Presentation has been procured from the SEBI website and other authentic media
sources.
20