BRIEF NOTE ON ROLE OF AN AIF TRUSTEE
SEBI (AIF) Regulations, 2012 has entrusted following responsibility on the Trustee of an AIF:
Trustee shall act in the interest of unit-holders of the AIF/scheme and not take any action which is prejudicial to
the interest of the unit-holders and not place the interest of the sponsor / manager of the AIF or any of their
associates above the interest of the unit-holders of the scheme/AIF.
Trustee shall maintain high standards of integrity and fairness in all their dealings and in the conduct of the
business and render at all times high standards of service, exercise due diligence and exercise independent
professional judgment.
Trustee, in its capacity as AIF Trustee is required to ensure the following to comply with various provisions of the
SEBI (AIF) Regulations, 2012:
Stages Role of Trustee
Role of Trustee in Complete hand holding during fund registration process.
Registration of an AIF: Collating necessary documents for the purpose of application
Execution of Trust Deed and Registration of the same.
Obtaining PAN of the Trust for AIF Registration
Preparation and filing of AIF application (Form A) with SEBI and submitting all of
the required information, declarations, and documents as prescribed in the First
Schedule to the AIF Regulations, which, among other things, include:
a) KYC and financial documentation relating to the AIF, its Manager, its
sponsor
b) The private placement memorandum (“PPM”) and the AIF’s constitutive
instrument, where applicable; and
c) Disciplinary history declarations.
Co-ordination with SEBI, for obtaining registration.
Assisting in representation to SEBI from Fund Trustee perspective at time of
application to SEBI.
Vetting of Trust Deed.
Role of Trustee in
Documentation of AIF Vetting of Placement Memorandum to ensure all the disclosures as may be
Transaction: required under SEBI (AIF) Regulation 2012 has been made. Care should be
taken that the PM is in the format prescribed by SEBI.
Vetting of Contribution Agreement, Investment Management Agreement &
Other Transaction related documents
Facilitate registration of Trust Deed and execution of other documents.
Ensure Payment of adequate Stamp Duty on the aforementioned documents
Ensure that the original documents are collected and kept under the safe
custody of Trustee
BRIEF NOTE ON ROLE OF AN AIF TRUSTEE
During the currency of the Fund, our role would involve oversight of Fund
Role of TRUSTEE in
Administration of AIF Manager’s activities to ensure compliance vis-a-vis through a quarterly
Transaction: reporting mechanism:
Making PAN & TAN Application in the name of trust or scheme (as confirmed
by Investment Manager).
Opening and/or operating Bank Account (as per IM Recommendation).
Opening of De-mat Account and custody (as per IM Recommendation).
Co-ordination for Signing Contribution Agreement (stamp papers will be
procured by IM only).
Approval for Investments based on recommendation letter from IM and IC
Approval (this is only for CAT I & II).
Bank Account Operations – Payments (optional).
Review and signing of Annual Financials based on draft audit report and
confirmation from IM that financials are in order.
Review of Tax computation and signing of Income Tax Return based on
confirmation from Tax consultant and IM of the fund.
Approval for Distribution based on Recommendation letter from IM and all
details of tax discharged on sale/income of the fund.
Trustee is required to monitor that the investment conditions and restrictions
Role of Trustee in
Monitoring the Fulfilment of under the SEBI AIF Regulations are being complied with by the AIFs of which
Investment Conditions and TRUSTEE is a Trustee.
Restrictions under SEBI AIF
Regulation
AIF may raise funds by launching various schemes. Trustee at the time of fund raising
Role of Trustee during Fund
Raising by the AIF is required to ensure the following:
For each scheme, ensure that the AIF files placement memorandum or
information memorandum (IM) with SEBI at least 30 days prior to launching the
scheme along with requisite fees. Exception: No fees to be paid for launching
first scheme.
IM should contain all material information about the AIF and the Manager and
should contain minimum disclosures as provided in Regulation 11(2) of the AIF
Regulations to help investors to take informed investment decision.
Speedy redressal of unit holder’s grievances
Miscellaneous Role
Compliance of the provisions of AIF Regulations and circulars made thereunder
