Summary: Under SEBI’s Alternative Investment Fund (AIF) Regulations, 2012, various compliance requirements are imposed on AIFs. These include quarterly and annual submissions like the Quarterly Compliance Report, Annual Compliance Test Report, and reports to investors, with specific deadlines. AIFs must disclose NAV for Category III funds on a monthly or quarterly basis, depending on whether the fund is open or close-ended. Additionally, AIFs must conduct biannual valuations, performance benchmarking, and annual audits. Key compliance also includes dematerialization of units and investments, maintaining a compliance officer, and appointing a custodian and registrar. Investment limits restrict AIFs from investing more than 25% of investable funds in a single investee company, with certain exceptions for Category III AIFs. AIFs must also adhere to due diligence procedures, maintain investor complaint records, and follow a stewardship code for listed equities. Deadlines for certifications, audits, and reports ensure the ongoing regulatory adherence, with some obligations, such as appointing a compliance officer, being perpetual.
COMPLIANCES UNDER SEBI AIF REGULATIONS
| Sr. No | Compliances | Category of AIF | Monthly/ Quarterly/Half yearly/Annually/ Perpetual | Due date |
| 1 | Quarterly Compliance Report | All Categories | Quarterly | To be filed within 15 days from the end of the quarter on SEBI SI portal |
| 2 | Annual Compliance Test Report | All Categories | Annual | 1) Submission of CTR to Sponsor/Trustee- within 30 days from the end of the financial year.\
2) Trustee/Sponsor to provide comments, if any on CTR within 30 days from receipt of CTR. 3) Making changes in CTR and resubmission of the same to the Trustee/ Sponsor- within 15 days from receipt of the observations/comments if any |
| 3 | Report to the investors | All Categories | Annual | Annual Report to be provided to the investors of AIFwithin 180 days from the year end |
| 4 | Disclosure of NAV to the investors | Category III | Not less than Month/Quarter | 1) Not later than month – Open ended funds
2) Not later than quarter- Close ended funds |
| 5 | Valuation of AIF investments | Category I & II
Category III |
Half yearly; or
Annually if consent of 75% of the investors of AIF (by value) has been obtained |
31 March/ 30 Sept
Annual Basis |
| 6 | Obtain Performance benchmarking | All Categories | A half yearly basis based on the data as on 31 March and 30 September of each year | 1) Within 6 months from the end of every half year ending on 31 March; and
2) Within 45 days from the end of every half year ending on 30 September |
| 7 | Annual audit of accounts of AIF by a qualified auditor | All Categories | Annual | On or before 30 September |
| 8 | Demateriliasation of units of AIF | All Categories | All AIFs to noe issue units in demat only | |
| 9 | Dematerilisation of investments of AIF (Whether investments made directly in the investee company or is acquired from another entity) |
All Categories | Perpetual unless exempted | 1 October, 2024 |
| 10 | NISM series XIX-C Alternative Investment Fund Managers Certifications requirement by Key Investment team off the Investment Manager | All Categories | Perpetual | 1) Immediate for all new AIFs
2) Existing schemes/ schemes whose application for launch of scheme was pending as on 10 May 2024 to obtain NISM Certification by 9 May, 2025 |
| 11 | PPM Audit | All Categories | Annual | Within 6 months from the end of the financial year |
| 12 | Limit on investible funds | All Categories | Perpetual | 1) Category I and II AIFs not to invest more than 25% of the investable funds in an Investee Company
2) Except Large Value Fund (invests not less than INR 70 crores in AIF) can invest upto 50% of the investable funds in an investee company 3) Category III AIFs not to invest more than 10% of the investable funds in an Investee Company |
| 13 | Appointment of Compliance Officer | All Categories | Perpetual | Immediate after registration of AIF
AIFs shall ensure that IM shall designate an employee or director as Compliance Officer who shall be a person other than CEO of the manager of such equivalent role or position depending on the legal structure of Manager |
| 14 | Appoinment of custodian | All Categories | Perpetual | 1) The custodian for a scheme of an AIF shall be appointed prior to the date of first investment of the scheme
2) Existing schemes of Category I and II AIFs having corpus less than or equal to INR 500 crore and holding at least one investment as on date of this circular shall appoint custodian on or before 31 January 2025 3) All Cat III AIF |
| 15 | Appointment of Registrar and Transfer Agent (RTA) | All Categories | Perpetual | Upon obtaining AIF registration |
| 16 | Maintaining of continuing interest of Sponsor/ Investment Manager | All Categories | Continual Basis | Continuing Interest |
| 17 | Pooling vehicles shall not be created solely for the purpose of investing in an AIF | All Categories | Perpetual | – |
| 18 | Maintain Data on investors complaints in a specified format | All Categories | Perpetual | – |
| 19 | Due diligence with respect to investors and investments | All Categories | Continual | – |
| 20 | Stewardship Code | All Categories | Continual | AIF to mandatorily follow the stewardship code in relation to their investments in listed equities |