ameeksingh
2 posts
Sep 03, 2025
3:20 AM
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Obtaining an Alternative Investment Fund (AIF) license involves a multi-stage regulatory process, and the total time required depends on various factors, including the jurisdiction, the complexity of the fund’s structure, and the preparedness of the application documents.
In India, for example, the Securities and Exchange Board of India (SEBI) is the governing authority that issues AIF licenses. Typically, the process can take 2 to 6 months from the date of application submission.
Here’s a general timeline breakdown:
1. Pre-Application Preparation (2–4 weeks):
This stage includes finalizing the fund structure, drafting the Private Placement Memorandum (PPM), constituting the trust or company, and appointing service providers such as a trustee, fund manager, and custodian (if required). Legal and compliance consultation is essential during this phase.
2. Application Filing with SEBI (1 week):
Once all documents are ready, the application is submitted to SEBI in the prescribed format along with the applicable fees.
3. SEBI Review and Clarifications (1–3 months):
SEBI reviews the application and often seeks clarifications or additional information. Timely and accurate responses from the applicant can speed up this phase.
4. Final Approval and Registration (2–4 weeks):
Upon satisfaction, SEBI grants the AIF registration certificate, officially allowing the entity to operate as an AIF under the selected category (Category I, II, or III).
Efficient preparation, professional guidance, and transparent communication with SEBI can help shorten the approval timeline significantly.
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