AIF registration is an essential process for fund managers seeking to legally raise capital from investors and deploy it in alternative assets. By obtaining SEBI registration, fund managers comply with a structured framework that promotes transparency, accountability, and efficient capital deployment. Without AIF registration, funds cannot legally operate within India’s financial ecosystem.
These funds are regulated by SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012, and must meet various regulatory and operational requirements before they can begin operations.

A key feature of AIFs is that they operate as closed-ended funds with a minimum investment tenure of three years. This distinguishes them from mutual funds or open-ended funds that allow investors to redeem investments at any point in time.