AIF Registration for Real Estate & Infrastructure Projects

Alternative Investment Funds (AIFs) have become a popular investment vehicle in India, especially for real estate and infrastructure projects. With increasing demand for structured funding and regulatory transparency, AIF Registration under SEBI has emerged as a preferred route for developers, investors, and fund managers looking to raise capital legally and efficiently.

What is an Alternative Investment Fund (AIF)?

An Alternative Investment Fund (AIF) is a privately pooled investment vehicle registered with the Securities and Exchange Board of India (SEBI). It collects funds from investors and invests them according to a defined investment strategy.

AIFs play a crucial role in financing capital-intensive sectors such as real estate, infrastructure, private equity, and venture capital.

Importance of AIF Registration for Real Estate & Infrastructure Projects

Structured Fundraising Mechanism

Real estate and infrastructure projects require long-term capital. AIFs provide a structured platform to pool funds from high-net-worth individuals (HNIs), institutions, and global investors.

Regulatory Compliance & Investor Confidence

With proper AIF Registration, funds operate under SEBI regulations, ensuring transparency, governance, and investor protection.

Access to Institutional & Foreign Capital

Registered AIFs attract domestic and foreign investors who prefer regulated investment structures for large-scale projects.

Types of AIFs Suitable for Real Estate & Infrastructure

Category I AIF

• Focuses on infrastructure funds, social venture funds, and SME funds

• Receives government incentives and support

• Ideal for infrastructure development projects

Category II AIF

• Includes private equity and real estate funds

• No leverage allowed except for operational needs

• Most preferred category for real estate projects

Category III AIF

• Uses complex trading strategies and leverage

• Less commonly used for real estate and infrastructure

Eligibility Criteria for AIF Registration

Fund Structure Requirements

• Must be established as a Trust, LLP, or Company

• Clearly defined investment objectives

• Minimum fund corpus of ₹20 crore (₹5 crore for Angel Funds)

Sponsor & Manager Conditions

• Sponsor or Manager must have a continuing interest

• Minimum contribution of 2.5% of corpus or ₹5 crore (whichever is lower)

AIF Registration Process in India

Step 1: Fund Structuring

Drafting of trust deed, investment strategy, and placement memorandum.

Step 2: SEBI Application Filing

Submission of AIF Registration application through SEBI’s online portal with required documents.

Step 3: SEBI Review & Clarifications

SEBI examines the application and may request clarifications or additional documents.

Step 4: Grant of AIF Registration Certificate

Once approved, SEBI issues the registration certificate, allowing the fund to operate legally.

Compliance Requirements After AIF Registration

Ongoing SEBI Filings

Regular reporting to SEBI including financial statements and investor disclosures.

Audit & Valuation Norms

Mandatory annual audits and valuation of assets by registered professionals.

Tax & Legal Compliance

Adherence to applicable tax laws, FEMA regulations, and investor reporting standards.

Benefits of Choosing AIF for Real Estate & Infrastructure

• Long-term capital availability

• Professional fund management

• Improved project credibility

• Better risk diversification

• Enhanced investor trust

Why Choose Registrationwala for AIF Registration?

Registrationwala is a trusted legal and financial services provider offering end-to-end assistance for AIF Registration in India. From fund structuring and documentation to SEBI approvals and post-registration compliance, Registrationwala ensures a smooth, hassle-free process.

How Registrationwala Helps:

• Expert consultation for real estate & infrastructure AIFs

• End-to-end SEBI AIF registration support

• Compliance management and ongoing advisory

• Transparent pricing and dedicated professionals

Conclusion

AIFs have transformed the way real estate and infrastructure projects raise capital in India. With the right structure and timely AIF Registration, developers and fund managers can unlock large-scale investments while maintaining regulatory compliance. Partnering with experts like Registrationwala ensures a seamless registration process and long-term success.