An AIF’s operations involve key parties beyond the fund manager to ensure proper governance and investor protection.
- Custodian: An independent entity responsible for the safe-keeping of the fundÕs assets (e.g., share certificates, bonds).
- Trustee/Designated Partner: Holds the fund’s assets in trust for the investors and oversees the fund manager to ensure they operate within the fund’s stated objectives and SEBI regulations.
These entities provide a crucial layer of oversight, ensuring transparency and reducing fraud risk for investors.
