Operating Guidelines for Alternative Investment Funds in International Financial Services Centres

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..... framework for setting up of Alternatives Investment Funds (hereinafter referred to as 'AIF') in IFSC. 2. Based on the deliberations in Alternative Investment Policy Advisory Committee (AIPAC) and in consultation with other stakeholders, it has been decided to put in place 'Operating Guidelines for Alternatives Investment Funds in IFSC'. The same is annexed herewith. 3. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 4. The circular is available on SEBI website at www.sebi.gov.in under the categories "Legal framework - Circula .....

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..... hrough the Foreign Portfolio Investment route in terms of SEBI circular dated May 23, 2017 governing permissible investments by AIFs operating in IFSC. Now, such AIFs may invest in India through the Foreign Venture Capital Investor or Foreign Direct Investment (FDI) route also, in accordance with applicable FDI policy/ guidelines issued by Government of India and RBI in this regard. 6. Each scheme of the AIF shall have corpus of at least USD three million; 7. The AIF shall accept from an investor, an investment of value not less than USD one hundred and fifty thousand : Further, for investors who are employees or directors of the AIF or employees or directors of the Manager, the minimum value of investment shall be USD forty thousand. 8 .....

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..... following financial criteria : i. An individual investor shall have net tangible assets of at least USD three hundred thousand excluding value of his principal residence, ii. A body corporate shall have a net worth of at least USD one million five hundred thousand. c. Angel funds shall accept, up to a maximum period of five years, an investment of not less than USD forty thousand from an angel investor. d. Investment by Angel Funds. i. Angel funds shall invest in venture capital undertakings (VCU) in India in accordance with DIPP Guidelines as referred to in regulation 19(F)(1) (a) of AIF regulations. ii. Angel funds shall invest in VCUs which have a turnover of less than USD three million, seven hundred and fifty thousand; iii. Ange .....

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