Collective Investment Scheme Requirements

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What is an Authorized Collective Investment Scheme (ACI)?

A collective investment authorized is a good way to save money among many avenues of investment that are required to improve collective and return investment strategies. This is a great way to save money for your future.

The mutual fund is not allowed to be part of collective investment plans in India. It refers to any arrangement or scheme that the company offers to investors for payments or contributions to create the pool money. The pool is used to receive income or profits, production, or property, and is managed by the manager.

What is the Collective Investment Management Company (CIM)?

A collective investment company is one that has been established under the Companies Act 2013, 2013 provisions, with the primary objective of managing, organizing, and operating a collective investment program. It is also registered with SEBI.

How do I register with SEBI

The steps to register under SEBI are:

  1. To obtain the certificate, the management company must first sponsor or launch a collective investment plan.
  2. Next, the concerned collective management firm must file an application to register with the board using the prescribed Form A. They must submit the prescribed document and the non-refundable fee according to Schedule 11.
  3. After receiving the application, the board may reject an incomplete or incorrect application. Remember to include all required documents with your application. The board will only give a one-month time limit to resolve all discrepancies before rejecting the application. The board can extend the time limit if there are sufficient reasons.
  4. After the board has approved the application, the applicant must pay the required fees. After payment of the fees, the company will be issued a Certificate of Incorporation in Form B.
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What are the requirements for Collective Investment Scheme?

The board checks eligibility before issuing a certificate.

  1. The concerned applicant is registered according to the Companies’ Act 2013 or Companies’ Act 1956.
  2. The company’s net worth is approximately INR 5 crores.
  3. The main object of managing the collective investment scheme is the Memorandum d’association.
  4. For such certificates to be granted, a person must be fit and healthy.
  5. The applicant must have the necessary infrastructure to execute the collective investment schemes as required by these regulations.
  6. The director or key person must have the required experience in this field and should not be convicted of any crime.
  7. The Management Company must have a minimum of 50% directors who aren’t directly or indirectly associated with any individual who controls the collective investment management company.

Contact enterslice’s legal advisors for more information. Our legal technology company team aims to offer end-to-end services to clients who want to register their company SEBI according to regulations.