AIFs As LLPs Vis-à-vis Trusts: Choosing The Right Vehicle Under India's Evolving Fund Regime

Summary:

Alternative investment funds (“AIFs”) are privately pooled investment vehicles which raise funds and invest in accordance with a defined investment policy for the benefit of the investors. AIFs established and operating within India (except in the Gujarat International Finance Tec-City (“GIFT City”)) are regulated by the Securities and Exchange Board of India (“SEBI”) under the SEBI (Alternative Investment Funds) Regulations, 2012, as amended (“AIF Regulations”), which allow AIFs to be structured as a trust, a limited liability partnership (“LLP”), a company, or a body corporate¹. AIFs set up within GIFT City are governed by the International Financial Services Centre Authority Act, 2019 (“IFSC Act”).