Collective Investment Schemes
Collective Investment Schemes (CIS)
If you’re pooling money from investors and managing it as a shared investment venture — whether in agriculture, real estate, plantations, or alternative assets — SEBI may classify it as a Collective Investment Scheme. Without CIS registration, such arrangements can be treated as illegal fund-raising, even if intentions are genuine.
Proper registration protects the business, investors, and promoters from regulatory action.
What is a Collective Investment Scheme?
A CIS is a regulated investment structure where funds from multiple investors are pooled, managed collectively, and returns are shared based on contribution. SEBI approval is mandatory before launching, marketing, collecting funds, or operating such schemes in India.
Who needs CIS registration
Agri/plantation and farm yield schemes
Group real estate or land development projects
Revenue-sharing investment models
Large community-based investment pools
Businesses promising fixed or performance-linked payouts from pooled assets
If investors rely on the operator — not themselves — to generate returns, it likely qualifies as CIS.
Key eligibility requirements
Company incorporated under the Companies Act
Minimum net worth of ₹5 crore (₹25 crore within 3 years)
Fit and proper promoters and directors
Strong governance, risk, compliance, and investor protection systems
Clear business plan, investment objective, and asset oversight
What we assist with
CIS eligibility analysis and structuring
Drafting offer documents, agreements, and disclosures
SEBI application preparation and filing
Compliance framework, trustee appointment, and investor safeguards
Responding to SEBI queries and inspections
Post-registration reporting, governance, and annual compliance
Documents usually required
Incorporation documents, shareholding, and board details
Net worth and audited financials
Business plan, investment model, revenue distribution structure
Trustee appointment and governance policies
Investor onboarding, KYC, grievance procedures
Risk management and asset monitoring framework
Our process
Understand business model and investor structure
Confirm whether CIS regulations apply
Prepare documents, policies, and compliance framework
File application and support SEBI evaluation
Assist in onboarding and post-approval obligations
Frequently Asked Questions
If money is pooled, managed collectively, and investors expect returns without active involvement.
No. SEBI restricts unregistered schemes and may initiate action.
Generally 4 to 9 months, depending on documentation and SEBI review.
Often yes, unless structured within permitted exemptions.
Yes. Trustees safeguard investor assets and interests.