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ARTICLE · 20 DECEMBER 2022

Regulatory Framework Of Alternative Investment Fund (AIF) In India

Ahlawat & Associates
Ahlawat & Associates
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Ahlawat & Associates

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A few years ago, the only way to accumulate financial assets in India was to invest in conventional investment categories like equities, bonds, real estate, FDs, etc.

IndiaFinance and Banking
Sumit Kochar
Sumit Kochar
Shivam Gera
Shivam Gera
  1. INTRODUCTION

A few years ago, the only way to accumulate financial assets in India was to invest in conventional investment categories like equities, bonds, real estate, FDs, etc. With a growing population of high-net-worth individuals in the nation, there is a rising need for unorthodox investment possibilities.

Alternative Investment Funds ("AIF") are a type of unorthodox investment choice. AIF is a fund that investors can utilize to invest and gain benefits. AIFs are a pool of money that collects money from sophisticated private investors. Alternative Investment Funds are a viable option for sophisticated investors who want to diversify their holdings.

The Funds that are collected will be invested as per the investment policy of the AIF. The Securities and Exchange Board of India's mutual fund regulations doesn't govern AIFs. However, in 2012, the Securities and Exchange Board of India ("SEBI") introduced the SEBI (AIF) Regulations 2012 ("AIF Regulatio

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