Regulation 10 - Investment in Alternative Investment Fund - Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012

Investment in Alternative Investment Fund. 10. Investment in all categories of Alternative Investment Funds shall be subject to the following conditions:- (a) the Alternative Investment Fund may raise funds from any investor whether Indian, foreign or non-resident Indians by way of issue of units 6 [ : ] 7 [ Provided that a social impact fund or schemes of a social impact fund may also issue social units; ] 12 [ (aa) The Alternative Investment Fund shall issue units in dematerialised form subject to the conditions specified by the Board from time to time. ] (b) each scheme of the Alternative Investment Fund shall have corpus of atleast twenty crore rupees 8 [ : ] 9 [ Provided that each scheme of the social impact fund shall have a corpus of at least five crore rupees; ] (c) the Alternative Investment Fund shall not accept from an investor, an investment of value less than one crore rupees: Provided that in case of investors who are employees or directors of the Alternative Investment Fund or employees or directors of the Manager, the minimum value of investment shall be twenty five lakh rupees 4 [ : ] 5 [ Provided further that this clause shall not apply to an accredited investor 10 [ : ]] 11 [ Provided further that in case of a social impact fund which invests only in securities of not for profit organizations registered or listed on a social stock exchange, the minimum value of investment by an individual investor shall be two lakh rupees; ] (d) the Manager or Sponsor shall have a continuing interest in the Alternative Investment Fund of not less than two and half percent of the corpus or five crore rupees, whichever is lower, in the form of investment in the Alternative Investment Fund and such interest shall not be through the waiver of management fees: Provided that for Category III Alternative Investment Fund, the continuing interest shall be not less than five percent of the corpus or ten crore rupees, whichever is lower. (e) the Manager or Sponsor shall disclose their investment in the Alternative Investment Fund to the investors of the Alternative Investment Fund; (f) no scheme of the Alternative Investment Fund shall have more than one thousand investors 1 [:] 2 [Provided that the provisions of the 3 [Companies Act, 2013] shall apply to the Alternative Investment Fund, if it is formed as a company.] (g) the fund shall not solicit or collect funds except by way of private placement. ************** NOTES:- 1 Substituted by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2013, w.e.f. 16-09-2013 for the symbol ; 2 Inserted by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2013, w.e.f. 16-09-2013 3 Substituted by the SEBI (Alternative Investment Funds)(Amendment) Regulations, 2018, w.e.f. 01-06-2018. Prior to the substitution, it read as Companies Act, 1956 . 4. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/33 dated 03-08-2021 before it was read as . 5. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/33 dated 03-08-2021 6. Substituted vide F. No. SEBI/LAD-NRO/GN/2022/89 dated 25-07-2022 before it was read as, ; 7. Inserted vide F. No. SEBI/LAD-NRO/GN/2022/89 dated 25-07-2022 8. Substituted vide F. No. SEBI/LAD-NRO/GN/2022/89 dated 25-07-2022 before it was read as, ; 9. Inserted vide F. No. SEBI/LAD-NRO/GN/2022/89 dated 25-07-2022 10. Substituted vide F. No. SEBI/LAD-NRO/GN/2022/89 dated 25-07-2022 before it was read as, ; 11. Inserted vide F. No. SEBI/LAD-NRO/GN/2022/89 dated 25-07-2022 12. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/132 dated 15-06-2023