Listing of Scheme of Alternate Investment Fund on BSE

Defined as:

Regulation 2(1) (b) of the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 defines alternative investment funds (AIFs) in India. Any privately pooled investment money (whether from Indian or foreign sources) in the form of a trust, a corporation, a body corporate, or a Limited Liability Partnership is referred to as a private pooled investment fund (LLP). As a result, in India, AIFs are private funds that are not subject to the authority of any regulatory agency.

Alternative Investment Funds are divided into several categories (AIFs)

Alternative Investment Funds must register in one of three categories, according to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations of 2012.

Category I: Invests mostly in start-ups, small businesses, and any other industry that the government deems economically and socially viable.

Category II: Alternative Investment Funds (AIFs) such as private equity and debt funds that receive no special incentives or concessions from the government or any other regulator fall under this category.

Category III: Alternative Investment Funds, such as hedge funds or funds that trade with the goal of making short-term profits, or other open-ended funds for which the government or any other regulator provides no special incentives or concessions.

Alternative Investment Funds / Schemes: Tenure and Listing

The duration of AIF schemes established under Category I and II will be set at the time of application and shall be for a minimum of three years.

Alternative Investment Funds in Category III might be opening-ended or closed-ended.

The near-ended Alternative Investment Fund's term can be extended for up to two years with the agreement of two-thirds of the unit holders by value of their investment in the Alternative Investment Fund. In the absence of an unitholder agreement, the Alternative Investment Fund will entirely liquidate within one year of the fund's initial or extended-term expiring.

A minimum trading lot of one crore rupees is required for close-ended Alternative Investment Fund units to be listed on the stock market. Only when the fund or plan has closed will such a listing be authorized. Listed on stock exchanges, on the other hand, is entirely optional.

Process and Documentation required for listing and trading AIF on BSE:

Step1 Approach BSE for seeking in-principle approval for listing and trading of unit

Step2 Upon receipt of in principle from BSE, AIF approaches SEBI for seeking approval

Step3 upon SEBI approval, AIF approach BSE for listing and trading

Documentation               

  1. List of docs for seeking in-principle approval for listing units of AIF

A certified true copy of the following:

  1. Placement memorandum/draft information. (physical copy and soft copy)
  2. Investment agreement (in-case of 1st listing)
  3. Certificate of registration of AIF issued by SEBI. (in case of 1st listing)
  4. Custodian Agreement (in case of 1st listing)
  5. R & T Agreement (in case of listing)
  6. Trust Deed (if applicable)
  7. Memorandum & Article of association of the issuer (in case of 1st Listing)
  8. Passed Resolution copy at their meeting approving listing of units of closed-ended AIF on BSE ltd
  9. An assurance from the CEO/compliance officer that the AIF complies with all applicable laws, including the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, as modified.

Non-refundable processing fees are as follows:

Particulars

Fees Amount

Per Placement Memorandum/ Information Memorandum

INR 50,000

 

  1. List of documents to be submitted for a listing of units of AIF (Post allotment of units)

A certified true copy of following

  1. Letter of application for listing of units of the scheme.
  2. Details of the applicant and issue details (in case of 1st issue)
  3. A certified true copy of observations/comments received from SEBI on the / placement Memorandum/ Scheme information Documents.
  4. A certified true copy of final Placement memorandum/ scheme information documents (SID) (soft copy also required)
  5. Unit holding pattern of unitholders of the scheme (as per format)

Scheme name

Option

Mode of Issue

ISIN

Symbol

Date of allotment

Number of unit

Face Value

Issue Price

Date of redemption

 

 

 

 

 

 

 

 

 

 
  1. Confirmation from the CEO / Compliance Officer of the number of units authorised and the actual number of units allotted.
  2. Description of the Collection.
  3. According to SEBI LODR Regulations, a listing agreement is required in the event of a first listing. (The format will be available shortly.)
  4. Confirmation from the CEO / Conformity Officer that the company is in compliance with the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, including later modifications and SEBI circulars.
  5. NSDL and CDSL confirmation (ISIN activation)
  6. RTA confirmation of the final number of units to be allotted with NSDL, CDSL, and provided in physical form.
  7. An undertaking from the RTA that they have deducted the units from the relevant schemes and credited the applicable units in this scheme for the units considered under switching (if applicable).
  8. Received credit confirmation from NSDL / CDSL.
  9. Confirmation from RTA those Certificates, Account Statements, and Refund Orders have been dispatched.
  10. Annual listing costs plus applicable taxes are included in the price.
  11. The Exchange reserves the right to request additional documents in addition to those listed above, BSE has the right to change, alter, eliminate, or amend any or all of the above requirements.

The submission of paperwork and payments does not imply that units will be listed or that BSE will give permission.

For Listing of Units of Schemes under AIF (Post allotment of units)

Non-Refundable Alternative Investment scheme Annual Listing Fees to be paid year on year

Sr. No.

Particulars

Fees Amount

1

Initial Listing Fees

NIL

2

Annual Listing Fees for tenure of the scheme

Payable per annum or part thereof

3

Issue Size up to INR 250 Crores

INR 250000

4

Above INR 250 crores and upto INR 500 Crores

INR 375000

5

Above INR 500 Crores and upto INR 750 Crore

INR 500000

6

Above INR 750 Crores and upto INR 1000 Crores

INR 750000

7

Above INR 1000 Crores

INR 1000000