Venture Capital / AIF Registration

A venture-capital fund pools investor capital to invest in early-stage and growth companies. In India these funds are regulated by SEBI — not the RBI — as Alternative Investment Funds (AIFs), with venture capital falling under Category I.

Registration with SEBI under the AIF Regulations, 2012 is required, along with a defined fund structure, an appointed manager and sponsor, and compliance with the minimum corpus and investor-commitment norms.

• The fund's constitutional documents (trust deed / LLP or company documents)
• A private placement memorandum (PPM)
• Manager and sponsor details and track record
• Details of the investment strategy

1. 01

   Set up the fund vehicle

   Establish the trust, LLP, or company that will be the fund.

2. 02

   Appoint manager and sponsor

   Put the manager and sponsor in place with the required commitment.

3. 03

   Apply to SEBI

   File for AIF Category I (Venture Capital) registration with the PPM and documents.

4. 04

   Registration and launch

   On registration, meet the corpus and commitment norms and launch the fund.

PBT advises on the structure and manages the SEBI AIF registration.

• We advise on the fund structure and category
• We coordinate the constitutional documents and the PPM
• We manage the SEBI AIF application
• We advise on the corpus, commitment, and ongoing compliance
• Scope and fees agreed in writing up front

• Is a venture-capital fund regulated by the RBI or SEBI?

  By SEBI — as an Alternative Investment Fund under Category I — not the RBI.

• What is the minimum corpus?

  ₹20 crore, with a minimum investor commitment of ₹1 crore (lower for certain insiders).

• What vehicle is used?

  Typically a trust, though an LLP or company can also be used.

• How long does it take?

  It depends on the structuring and SEBI's review of the application.