Q15. Which of the following statements about Alternate Investment Funds (AIF) is not correct?
Q15. Which of the following statements about Alternate Investment Funds (AIF) is not correct?
The correct option is D (d) Private equity funds, debt funds etc. are excluded from the categories of AIF
1. AIF comes under Sebi (Alternative Investment Fund) Regulations 2012 and covers investments which do not happen via the traditional modes of investment such as listed stocks, bonds, cash, property etc. It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).
2. These funds are established in India in various formats like trusts, companies, limited liability partnership etc and are allowed to operate under three categories.
3. Category I get incentive from the government and include social venture funds, infrastructure funds, venture capital funds, SME funds etc.
4. Category II are not given any special incentives or concessions and can invest anywhere without raising debt. They can consider the latter route to meet daily requirements. Private equity funds, debt funds etc. are included in this category.
5. Category III operate to make short-term gains and come without any concessions. Hedge funds are included here.
(d) Private equity funds, debt funds etc. are excluded from the categories of AIF
1. AIF comes under Sebi (Alternative Investment Fund) Regulations 2012 and covers investments which do not happen via the traditional modes of investment such as listed stocks, bonds, cash, property etc. It refers to any privately pooled investment fund, (whether from Indian or foreign sources), in the form of a trust or a company or a body corporate or a Limited Liability Partnership (LLP).
2. These funds are established in India in various formats like trusts, companies, limited liability partnership etc and are allowed to operate under three categories.
3. Category I get incentive from the government and include social venture funds, infrastructure funds, venture capital funds, SME funds etc.
4. Category II are not given any special incentives or concessions and can invest anywhere without raising debt. They can consider the latter route to meet daily requirements. Private equity funds, debt funds etc. are included in this category.
5. Category III operate to make short-term gains and come without any concessions. Hedge funds are included here.
