MITCON Credensia serves as trustee for SEBI-registered Alternative Investment Funds (AIFs), helping fund managers comply with SEBI (Alternative Investment Funds) Regulations, 2012.
Categories we serve:
- Category I AIF — Venture Capital Funds, SME Funds, Social Venture Funds, Infrastructure Funds
- Category II AIF — Private Equity Funds, Debt Funds, Real Estate Funds
- Category III AIF — Hedge Funds, PIPE Funds, Long-Short Equity Funds
Our trustee responsibilities:
- Holding fund assets in fiduciary capacity
- Monitoring compliance with PPM and SEBI regulations
- Independent oversight of investment manager
- Investor protection and grievance handling
- Regulatory reporting and statutory compliance
- NAV verification and unit issuance oversight
Scope of Service
- Vetting of the trust deed, contribution agreement, private placement memorandum (PPM) and investment management agreement
- Holding the AIF's funds and assets in trust for the benefit of contributors / unit-holders
- Oversight of the Investment Manager to ensure investments are made in line with the PPM, trust deed and SEBI (AIF) Regulations, 2012
- Monitoring of fund utilisation, drawdowns, distributions and adherence to investment restrictions
- Review of compliance reports from the Investment Manager and compliance officer
- Convening meetings of contributors and acting on their consent / resolutions as required
- Filing of mandated regulatory disclosures and assistance with SEBI inspections
- Acting in the best interest of unit-holders across Category I, II and III AIFs
Frequently Asked Questions
What is an Alternative Investment Fund (AIF)?
An AIF is a privately pooled investment vehicle registered with SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012. AIFs are classified into Category I (venture capital, social impact, infrastructure, SME etc.), Category II (private equity, debt funds etc.) and Category III (hedge funds, long-short strategies etc.).
What is the trustee's role in an AIF?
The trustee holds the fund's assets in trust for the benefit of contributors, oversees the Investment Manager's compliance with the trust deed and PPM, monitors drawdowns and distributions, and acts in the best interest of unit-holders.
Is the trustee involved in investment decisions?
No. Investment decisions are made by the Investment Manager. The trustee's role is fiduciary and supervisory — to ensure those decisions stay within the boundaries set by the PPM, trust deed and SEBI regulations.
What is the difference between Category I, II and III AIFs?
Category I invests in start-ups, SMEs, social ventures and other government-encouraged sectors. Category II covers funds that do not fall under I or III and do not undertake leverage other than for operations (private equity, debt funds). Category III employs complex trading strategies and may use leverage.
How is fund utilisation monitored?
Through periodic reporting by the Investment Manager and compliance officer, including capital call details, drawdown reports, deployment confirmations and distribution waterfalls — all reviewed by the trustee.
What documents are required to set up the trusteeship?
Typically the trust deed, contribution agreement, PPM, investment management agreement, SEBI registration documents and KYC of the sponsor and Investment Manager.
What happens if the Investment Manager breaches the PPM?
The trustee can require the Investment Manager to remedy the breach, call a meeting of contributors, escalate to SEBI as needed, and in serious cases support removal of the Investment Manager in accordance with the trust deed.
How does MITCON Credentia support AIF clients?
Through specialised AIF operations expertise across all three categories, structured monitoring, prompt regulatory filings and a service-oriented approach to fund administration support.
Have questions about Trustee for Alternative Investment Funds?
Our team can walk you through structuring, fee arrangements, and compliance requirements.
Request consultation