SEBI AIF registration in 2026: step by step

Before you apply

• Legal form: most AIFs are trusts (with a registered trust deed); LLPs and companies are also allowed. The constitutional document must allow AIF activity and bar public invitations.
• Sponsor and manager: both must be “fit and proper”. The sponsor or manager keeps a continuing interest of the lower of 2.5% of corpus or ₹5 crore (5% or ₹10 crore for Category III), which can’t be met by waiving fees.
• Key investment team: at least one person with a professional qualification in finance, accountancy or similar, and at least one person holding the right NISM certification — Series XIX-C or XIX-D for Category I and II (XIX-C or XIX-E for Category III).
• Category: pick the right one — see AIF categories explained.

The steps

1. Set up the sponsor and investment manager entities, and execute and register the trust deed.
2. Get the investment team’s NISM certifications in place.
3. Apply online in Form A on SEBI’s intermediary portal, with the application fee.
4. Answer SEBI’s queries and pay the registration fee on approval.
5. Appoint a custodian and open bank and demat accounts — AIF units must be issued in demat form.
6. File the placement memorandum for the scheme through a SEBI-registered merchant banker (not needed for angel funds, AI-only funds and large value funds).

Fees

Source: Second Schedule, SEBI (AIF) Regulations, 2012, as amended to 14 July 2026. GST may apply.

Launch and first close

• 10 working days: a regular scheme can launch 10 working days after its placement memorandum is filed (it was 30 days before July 2026). A first scheme launches from the later of registration and that date.
• Minimum corpus: ₹20 crore per scheme; minimum investment ₹1 crore per investor (₹25 lakh for employees and directors); no minimum for accredited investors.
• First close must be declared within 12 months of being able to launch, with at least the minimum corpus. Miss it and you must refile.
• Tenure for Category I and II is at least three years from first close, extendable by up to two years with two-thirds of investors by value.

After registration

• Quarterly and annual activity reports to SEBI, a compliance test report, and an annual audit of compliance with the placement memorandum.
• Independent valuation of Category I and II portfolios at least every six months.
• Performance benchmarking, a direct plan option and the investor charter in the placement memorandum.
• Tax: see how AIFs are taxed.

Prefer a dollar fund? Compare GIFT City vs SEBI AIF.

Frequently asked questions

Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.