AIF registrations fall short of Sebi expectation

Regulator revises the estimate downward by 30%

The number of Alternative Investment Funds (or AIFs) lining up for registration with the regulator are far fewer than what the Securities and Exchange Board of India had expected at the beginning of the year.

The number has fallen short by approximately 30%, suggest revised budget estimates made public as part of the regulator’s December board meeting agenda.

It had expected to collect over Rs 7 crore through registration fees when it prepared its budget at the beginning of the financial year. This has since been lowered to around Rs 4 crore, suggesting that they are lower by roughly 30% than budgeted estimates.

“The number of application for registration of Alternative Investment Fund and Investment Advisors has not been as per the budgeted expectation…resulting into downward revision of budgeted amount from Rs 7.20 crore to Rs 4.50 crore,” said the budget document.

There have only been 77 funds registered under the AIF regulations, as of September 30, Sebi data shows. It had budgeted for 520 applications through the year.

The regulator’s AIF regulations cover funds including private equity players, venture capital investors and even hedge funds. The regulations sought to rationalise the rules governing such funds and were issued in 2012.