Views on Life & on Equity Investing

Wonder, Wealth & Abundance

Fund Structure and Options

with 2 comments

I get several emails asking directly or indirectly information on setting up a fund structure. As I am unable to answer all of them due to my schedule, I am providing a few links, which will require further consultation with your Legal Advisor and Accountant.

This article dated 2011 covers some options for only investing in India. Not all but most of the information is quite correct in this article.

http://capitalmind.in/2011/06/creating-a-hedge-fund-in-india/#mau

Which covers:

Partnership
Limited Liability Company
Advisory Service
Private Limited Company
Mutual Fund
PMS (SEBI approved Portfolio Management Service)
A Mauritius Company
A Trust + VC Fund

SEBI has recently formulated Alternative Investment Fund (AIF) regulations which require 1 Crores INR investment per client for creation of Venture Capital or Hedge Funds.

http://www.sebi.gov.in/sebiweb/home/detail/23767/yes/PR-SEBI-notifies-SEBI-Alternative-Investment-Funds-Regulations-2012

As an Individual, for investing overseas one could invest with Kotak Securities for investing in 24 odd stock exchanges around the world (majority of them are developed countries, not where the puck is going to be! ).

Since the time of article SEBI’s PMS scheme’s fund requirements per client have now been raised to from 5 Lacs per client to 25 Lacs INR per client.

http://www.sebi.gov.in/faq/faqpms.html

There are several other options such as Offshore Trusts, International Business Company in Seychelles, British Virgin Islands, Cayman Islands, RAK-UAE, Panama etc.

I am still working with my Legal Counsel and Accountants for a structure for Eleven Dimensions Global Fund that will be registered overseas and not in India.. Focus of the Fund will be investing in emerging markets especially in powerful franchises. Some paperwork remains to be done over next couple of weeks.

Eleven Dimensions Global Fund website is functional with some more information for prospective investors.

http://www.elevendimension-funds.com

Written by amitdipsite

September 4, 2014 at 9:58 am

Posted in Uncategorized

2 Responses

Subscribe to comments with RSS.

  1. Hi Amit,

    If this is an offshore fund – then I think as an Indian resident – we may not be able to invest in such fund if the fund is also going to invest in Indian cmopanies. This may run afoul of Indian FEMA regulations. This is based on my experience and you should check this with your counsel.

    Btw are you planning to keep a minimum ticket size for investment in your fund

    Laddoo

    September 5, 2014 at 8:14 am

  2. Thanks for the advice. Money to be invested in India from Indian Nationals will stay in India.

    Having a fund set up with presence in more than one country is like playing chess in three dimensions. No CA of a single country knows everything.

    Amit Arora

    September 10, 2014 at 7:32 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: