 "Till January 2017, 288 AIFs registered with Sebi")
Markets regulator Securities and Exchange Board of India (Sebi) has allowed as many as 288 entities to set up Alternative Investment Funds (AIFs) over four-and-half years.
Sebi started registering AIFs since August 12, 2012.
As on January 2017, a total of 288 AIFs are registered with the Sebi, the latest data showed.
Of these, seven AIFs got the capital markets watchdog's nod last month, while about 100 had procured the nod in 2016.
Among the newly-registered AIFs are Lake Shore India Retail Venture Fund, Sundaram Alternative Investment Trust, Edelweiss Special Opportunities Fund, Reliance Event Opportunities Trust, IIFL Alternative Opportunities Fund and Brick Eagle India Affordable Housing Trust.
AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.
Under the Sebi guidelines, AIFs can operate broadly in three categories. Sebi rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.
The regulator had notified in May 2012, the guidelines or this class of market intermediaries.
The category-I AIFs are those funds that get incentives from the government, Sebi or other regulators and include social venture funds, infrastructure funds, venture capital funds and SME funds.
The Category-III AIFs are those trading with a view to make short-term returns and include hedge funds among others. The Category-II AIFs can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements.
These AIFs include private equity funds, debt funds or fund of funds, as also all others falling outside the ambit of above two other categories.
