Collective Investment Scheme Registration: What SEBI Allows
Collective investment scheme registration is not a routine filing. Under the SEBI (Collective Investment Schemes) Regulations, 1999, only a registered Collective Investment Management Company can run a scheme, and SEBI says none exists today. We check whether your plan is a CIS and move it into a lawful structure.
What it is
A collective investment scheme, or CIS, is any arrangement where many people put money into a common pool, the pool is managed for them, and they have no day-to-day control. Land plots, plantation units and fund-like products have all been sold this way. Section 11AA of the SEBI Act, 1992 defines it.
Collective investment scheme registration means registration of a Collective Investment Management Company with SEBI under the SEBI (Collective Investment Schemes) Regulations, 1999. Regulation 3 says only a registered company can launch a scheme. The catch: SEBI states that no such company is registered today, so this page is as much about finding a lawful route as about filing.
Who it applies to
Promoters planning pooled products
Say a Faridabad developer sells fractional plots and promises a yearly return. Whatever the brochure calls it, that can be a CIS.
Businesses already collecting money
Land, agri, plantation or asset-backed schemes that already take investor money need a review now, not after a notice arrives.
Founders choosing a fund structure
If the real aim is a regulated fund, the answer is usually an AIF or a mutual fund rather than a CIS. We compare them for you.
Why it matters
Classification decides your regulator
A pooled scheme is regulated by SEBI, an excluded product sits with another regulator, and a deposit scheme may fall under the BUDS Act. Getting the label right comes first.
Enforcement is real
SEBI can stop collections, order refunds with interest and bar operators from the capital market. Its December 2000 notice named 497 entities that had not registered.
A lawful structure protects investors and promoters
A properly registered vehicle lets you raise money without leaving the founders exposed.
Documents required
About the entity
- Certificate of incorporation, MoA and AoA
- PAN, registered office proof, shareholding
- Latest financial statements
About the scheme
- Offer documents, brochures and agreements signed with investors
- Money flow: how funds come in, where they go, what is promised
- Land, asset or project papers behind the scheme
About the people
- PAN and ID proof of directors and promoters
- Fit and proper declarations
- Past regulatory or court history, if any
How it works
Test your plan against section 11AA
We read your documents and apply the four-part test: pooled money, expected return, managed on behalf of investors, no day-to-day control.
Pick the lawful route
If the plan is a CIS, we compare an AIF, a mutual fund, a Nidhi, a lending licence or a plain company-raise on your actual numbers.
Prepare the filing for that route
For SEBI routes we draft the application and annexures. If you still want a CIMC, the application goes in Form A under Regulation 4.
Handle queries and the clean-up
We reply to SEBI or other regulators, coordinate with a practising advocate where a legal opinion is needed, and set up ongoing compliance.
Timelines
15 October 1999
The CIS Regulations were notified. Schemes already running had a window to apply, later extended to 31 March 2000.
7 December 2000
SEBI published a public notice: 497 entities had failed to register and 4 applications were rejected. SEBI later confirmed that no existing scheme was granted a certificate.
Before any launch
Regulation 24 bars a scheme launch without a credit rating and an appraisal by an appraising agency.
What happens if you run an unregistered scheme
SEBI directions
SEBI can prohibit collecting money, restrict disposal of assets and order refunds with interest.
Market bar and prosecution
SEBI can bar the operator from the capital market for a specified period. Its December 2000 notice warned of prosecution and winding-up proceedings.
Wider exposure
Deposit-type schemes may also attract action under the BUDS Act, 2019. Promoters carry personal exposure alongside the company.
Frequently asked questions
What is a collective investment scheme?
A collective investment scheme is an arrangement where money from many investors is pooled, managed on their behalf, and the investors do not control day-to-day decisions. Section 11AA of the SEBI Act, 1992 carries the definition. If your plan fits it, SEBI’s CIS Regulations apply, however you describe the product. Tell us how your plan works and we will test it against each limb.
Can I get collective investment scheme registration today?
Realistically, no. SEBI’s own FAQ states that no Collective Investment Management Company is registered with it, and no existing scheme was ever granted a certificate of registration. The Regulations still exist on paper, but a new launch is not a practical route. We will show you the structures that do work for pooled money.
Who can run a CIS under the Regulations?
Regulation 3 allows only a registered Collective Investment Management Company to carry on or launch a scheme. Regulation 4 requires an application in Form A to SEBI, and Regulation 9 sets eligibility such as incorporation as a company and fit and proper status. No scheme can launch without a credit rating and an appraisal under Regulation 24.
Is a mutual fund a collective investment scheme?
No. Mutual funds are specifically excluded from the CIS definition and run under the SEBI Mutual Funds Regulations. Chit funds under the Chit Fund Act, 1982 are excluded too. If you want a regulated pooled vehicle, an AIF or a mutual fund is the usual lawful home, and each has its own conditions.
What happens to an unregistered pooled scheme?
SEBI can stop money collection, restrict disposal of assets, order refunds with interest and bar the operator from the capital market. In its December 2000 public notice SEBI listed 497 entities that had failed to register and warned of prosecution and winding up. If you already run something like this, speak to us before SEBI writes to you.
Does the BUDS Act affect pooled schemes?
Yes. The Banning of Unregulated Deposit Schemes Act, 2019 separates regulated deposit schemes from unregulated ones. Schemes that are examined as collective investment schemes fall under SEBI’s Regulations, while other deposit-type schemes sit with their own regulators. A review of your scheme tells you which side it falls on.
Which lawful alternatives can replace a CIS?
The common ones are an Alternative Investment Fund (see our AIF registration page), a mutual fund sponsored through the AMC route, a Nidhi company for member deposits, or a lending structure under an NBFC licence. Each suits a different investor and different capital. We compare them on your numbers. Then we recommend one.
What should I do if my business already pools investor money?
Pause fresh collections and get a legal review first. We map the money flow, the promises made to investors and the documents signed, then tell you whether the plan is a CIS. Where it is, a practising advocate advises on the exit or restructure, and we prepare the paperwork and coordinate.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
SEBI fee figures for a collective investment management company are not shown here because we could not verify the current schedule. We confirm every government charge for your chosen route before you commit.
Ready to begin?
Describe how your scheme collects and uses investor money, and we will tell you whether it is a CIS and which lawful route fits.