Frequently Asked Questions

Disclaimer: The FAQs on this website are for general informational purposes only and do notconstitute legal, tax, investment, or regulatory advice. While care has been taken to ensureaccuracy, Taksh Asset Management Private Limited assumes no responsibility for errors orupdates. Users should seek professional advice before acting on any information containedherein

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  1. What is an Alternative Investment Fund (AIF) ?
    AIF refers to any privately pooled investment vehicle established in India, which collectsfunds from sophisticated investors, whether Indian or foreign, for investing in accordancewith a defined investment policy for the benefit of its investors.
  2. What are di erent categories of AIF ?
    SEBI classifies AIFs into three categories based on their investment objectives andstrategies:
    - Category I AIFs – AIFs which invest in start-up or early stage ventures or socialventures or SMEs or infrastructure or other sectors or areas which the governmentor regulators consider as socially or economically desirable and shall includeventure capital funds, SME Funds, social venture funds, infrastructure funds andsuch other Alternative Investment Funds as may be specified. [Ref. Regulation3(4)(a)]
    - Category II AIFs – AIFs which do not fall in Category I and III and which do notundertake leverage or borrowing other than to meet day-to-day operationalrequirements and as permitted in the SEBI (Alternative Investment Funds)Regulations, 2012. [Ref. Regulation 3(4)(b)]. Various types of funds such as realestate funds, private equity funds (PE funds), funds for distressed assets, etc. areregistered as Category II AIFs.
    - Category III AIFs – employ diverse or complex trading strategies and may useleverage, including through investment in listed or unlisted derivatives. [Ref.Regulation 3(4)(c)]. Various types of funds such as hedge funds, PIPE Funds, etc.are registered as Category III AIFs.
  3. Which Category of AIF does TIEF belong?
    Taksh India Enterprising Fund “TIEF” is an open-ended scheme of ‘Taksh AlternativeInvestment Trust’, which a category III SEBI Registered AIF. The certificate of registrationof an AIF shall be valid till the AIF is wound up.
  4. What is meant by the words open ended scheme?
    An open-ended scheme is not closed for redemption after the initial o ering — unlike aclosed-ended AIF, where investors can withdraw funds only after the fund’s tenureends. Open ended AIF does not have any specific tenure and investor can enter/ exitperiodically as per the fund terms
  5. Is the sponsor/management mandated to have an interest in AIF?What is meant by the words open ended scheme?
    In order to ensure that the interest of the Manager/Sponsor is aligned with the interestof the investors in the AIF, the AIF Regulations require that the sponsor/manager shallhave a certain continuing interest in the AIF which shall not be through the waiver ofmanagement fees. For Category III AIFs, the interest must be not less than five percentof the corpus or ten crore rupees, whichever is lesser [Ref. Regulation 10 (d)]
  6. Who is the Sponsor and Manager of the TIEF ?
    Taksh Asset Management Private Limited is the ‘’Sponsor’’ of TIEF. Sponsor is theperson/company who sets up the AIF and bring it the mandatory sponsor commitmentin the AIF. It is also the Manager of TIEF and the day-to-day operation of the Fund ismanaged by it.
  7. What is PPM ?
    PPM means Private Placement Memorandum. A Private Placement Memorandum(PPM) is a legal disclosure document provided by an AIF to potential investors. Itcontains detailed information about the fund’s structure, strategy, risks, management,and terms of investment. It’s meant to help investors make an informed decision beforeinvesting.
  8. Is an AIF permitted to make an invitation to the public to subscribe to its securities?
    No. AIFs are privately pooled investment vehicles. AIFs shall raise funds through privateplacement by issue of PPM
  9. Who can invest in a Category III AIF?
    Only sophisticated investors can invest, including:
    - Indian residents,
    - Non-resident Indians (NRIs),
    - Foreign nationals, and
    - Institutional investors (domestic or foreign).
  10. Are joint investors permitted in Category II AIF ?
    The following can act as joint contributors (maximum up to 2)
    - An investor and his/her spouse
    - An investor and his/her parent
    - An investor and his/her daughter/son