Choose the vehicle
| SEBI AIF (India) | GIFT City scheme (IFSC) | |
|---|---|---|
| Currency | Indian rupees | US dollars (or other foreign currency) |
| Minimum corpus | ₹20 crore per scheme | USD 3 million (venture capital and restricted schemes) |
| Minimum per investor | ₹1 crore (₹25 lakh for employees); none for accredited investors | USD 250,000 (VC scheme) or USD 150,000 (restricted scheme) |
| Best fit | Mostly Indian investors backing Indian companies | Global, NRI and foreign investors; India and overseas investments |
Full comparison: GIFT City fund vs SEBI AIF.
SEBI AIF in brief
- Category I covers venture capital, angel, SME, social impact and infrastructure funds; Category II is private equity and debt; Category III runs trading strategies. See AIF categories explained.
- Apply online on SEBI’s intermediary portal. The team needs at least one NISM-certified person and one with a relevant professional qualification.
- Since July 2026 a scheme can launch 10 working days after filing its placement memorandum through a merchant banker, and the scheme fee for the first scheme is waived.
- Category I and II AIFs are tax pass-through for most income. See AIF taxation.
Step-by-step: SEBI AIF registration process. Running an angel network? See angel funds under SEBI’s new rules.
GIFT City in brief
- Register a fund management entity with IFSCA — an Authorised FME (USD 75,000 net worth) can run venture capital schemes.
- Venture capital and restricted schemes open as soon as IFSCA takes the placement memorandum on record.
- IFSC tax holiday of 20 years out of 25 for the manager, and exemptions for non-resident investors.
More: how to set up a fund in GIFT City.
What we do
01
Structure
Vehicle, category, sponsor and manager entities, economics (fees, carry, hurdle), tax model for investors.
02
Register & launch
SEBI or IFSCA application, team eligibility, placement memorandum inputs, bank and custodian, first close.
03
Run the fund
Fund accounting, capital calls and distributions, valuations, SEBI/IFSCA reporting, tax and investor statements.
Durgesh has sat on the other side of the table: as Finance Head of Stimuler he led a USD 3.75M Pre-Series A end-to-end, so he knows what portfolio reporting founders can realistically deliver.
Frequently asked questions
How do I start a venture capital fund in India?
Choose between a SEBI-registered Category I AIF (venture capital sub-category) in rupees or a GIFT City venture capital scheme in dollars; set up the sponsor, manager and fund vehicle; register with SEBI or IFSCA; file the placement memorandum; and declare first close within 12 months.
What is the minimum corpus for an AIF in India?
₹20 crore per scheme for SEBI AIFs. Social impact funds need ₹5 crore. A GIFT City venture capital or restricted scheme needs at least USD 3 million.
How long does it take to launch a SEBI AIF?
After registration, a scheme can launch 10 working days after its placement memorandum is filed through a merchant banker, under the process introduced in July 2026. Registration time itself depends on SEBI's review.
Should I set up my fund in GIFT City or as a SEBI AIF?
If most investors are Indian residents investing in rupees into Indian companies, a SEBI AIF is usually simpler. If investors are global or NRIs, or the fund invests outside India, a GIFT City scheme is often a better fit.