Leading Law Firm Advising the Asset Management Industry in India

Legal Counsel for Fund Formation, Investment Activities, and Regulation

Foresight Law Offices advises fund managers, sponsors, investors (Limited Partners), and financial institutions on the legal and regulatory aspects of establishing and operating investment funds, managing assets, and conducting investment activities in India.

Understanding Asset Management Law in India

This field covers the legal framework governing the pooling of capital from investors to invest in securities, real estate, or other assets. It involves regulations primarily from SEBI (Securities and Exchange Board of India) for various fund structures like Alternative Investment Funds (AIFs), Mutual Funds, Portfolio Management Services (PMS), and Real Estate Investment Trusts (REITs)/Infrastructure Investment Trusts (InvITs). Key aspects include fund structuring, registration, investment conditions, disclosure norms, and compliance.

Our Asset Management Services

We provide comprehensive legal support to the asset management ecosystem:

Fund Formation & Structuring

Advising on choosing the appropriate fund structure (AIF categories, Mutual Fund schemes, etc.), drafting fund documents (Private Placement Memorandum, Trust Deed, Investment Management Agreement), and handling SEBI registration/applications.

Investment Management Regulations

Guiding fund managers on ongoing compliance with SEBI regulations, including investment restrictions, valuation norms, reporting requirements, and corporate governance.

Investor Negotiations

Assisting fund sponsors in negotiating terms with anchor investors and Limited Partners (LPs), including side letters and contribution agreements.

Fund Operations & Compliance

Advising on day-to-day operational compliance, service provider agreements (custodian, RTA), and handling regulatory inspections.

Secondary Transactions & Fund Restructuring

Advising on transfers of fund interests (secondary sales), fund term extensions, and restructuring of existing fund vehicles.

REITs & InvITs

Assisting sponsors, managers, and trustees with structuring, setting up, listing, and managing Real Estate Investment Trusts and Infrastructure Investment Trusts.

Portfolio Management Services (PMS)

Advising on SEBI registration and compliance for portfolio managers offering discretionary or non-discretionary services.

Our Approach

Our Asset Management team combines regulatory knowledge with an understanding of market practices. We focus on:

Frequently Asked Questions (FAQs)

Q1: What are Alternative Investment Funds (AIFs) in India?

AIFs are privately pooled investment vehicles established in India that collect funds from sophisticated investors (Indian or foreign) for investing according to a defined policy. SEBI categorizes them into Category I (Venture Capital, SME Funds, Infra Funds), Category II (Private Equity, Debt Funds), and Category III (Hedge Funds).

Q2: Who regulates Mutual Funds in India?

Mutual Funds in India are primarily regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Mutual Funds) Regulations, 1996.

Q3: What is the difference between a Trust Deed and an Investment Management Agreement for an AIF?

The Trust Deed is the constitutional document establishing the AIF as a trust, outlining its objectives, and appointing the Trustee. The Investment Management Agreement is entered into between the Trustee and the Investment Manager, appointing the manager and defining its powers, responsibilities, and fees for managing the fund’s investments.

Q4: What are REITs and InvITs?

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) are investment vehicles similar to mutual funds that allow individuals to invest in large-scale, income-producing real estate or infrastructure assets, respectively. They are regulated by SEBI and typically listed on stock exchanges.

Q5: What is the role of a Custodian for an investment fund?

A custodian is a SEBI-registered entity responsible for holding the securities and other assets of the fund in safekeeping, settling trades, collecting income, and performing related administrative functions, ensuring segregation of fund assets.

Discuss Your Asset Management Legal Needs

For expert legal advice on fund formation, regulatory compliance, or investment activities within India’s asset management sector, please contact Foresight Law Offices.