Section 10 in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
10. Investment in Alternative Investment Fund.
- Investment in all categories of Alternative Investment Funds shall be subject to the following conditions:-(a)the Alternative Investment Fund may raise funds from any investor whether Indian, foreign or non-resident Indians by way of issue of units;(b)each scheme of the Alternative Investment Fund shall have corpus of atleast twenty crore rupees;(c)the Alternative Investment Fund shall not accept from an investor, an investment of value less than one crore rupees:Provided that in case of investors who are employees or directors of the Alternative Investment Fund or employees or directors of the Manager, the minimum value of investment shall be twenty five lakh rupees.(d)the Manager or Sponsor shall have a continuing interest in the Alternative Investment Fund of not less than two and half percent of the corpus or five crore rupees, whichever is lower, in the form of investment in the Alternative Investment Fund and such interest shall not be through the waiver of management fees:Provided that for Category III Alternative Investment Fund, the continuing interest shall be not less than five percent of the corpus or ten crore rupees, whichever is lower.(e)the Manager or Sponsor shall disclose their investment in the Alternative Investment Fund to the investors of the Alternative Investment Fund;(f)no scheme of the Alternative Investment Fund shall have more than one thousand investors:[Provided that the provisions of the [Companies Act, 2013] [Inserted by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2013, w.e.f. 16-09-2013] shall apply to the Alternative Investment Fund, if it is formed as a company.](g)the fund shall not solicit or collect funds except by way of private placement.
