Category III AIF which focuses on providing high-risk, high-reward investment opportunities to institutional investors and high-net-worth individuals.
Non-banking financial company (NBFC) Standard Capital Markets has expanded its financial services portfolio with its foray into the alternate investment fund (AIF) business through its subsidiary Standard Capital Advisors Ltd.
According to the information shared, the company will invest Rs 50 crore in the first scheme of the fund. It also stressed that the company has plans to increase its investment in subsequent schemes.
“…announce its role as the Sponsor and Settlor for a Category III Alternative Investment Fund (AIF),” the company said in an exchange filing.
“The fund is expected to deliver annual returns ranging from 15 per cent to 20 per cent, providing high-yield opportunities for its investors,” the company added.
Category III AIF which focuses on providing high-risk, high-reward investment opportunities to institutional investors and high-net-worth individuals.
A Category III AIF, as recognized by the Securities and Exchange Board of India (SEBI), typically invests in complex financial instruments, including derivatives and structured products, and is designed to generate returns through a variety of strategies, including leveraged strategies, in the Indian
capital market.
As the Sponsor and Settlor, the NBFC will play an important role in the establishment, management, and governance of the fund.
Meanwhile, the stock of the company traded flat today at Rs 0.60.
Earlier, the company had announced a stock split and bonus distribution in December 2023. The split took effect in the ratio of 10:1 while the bonus was issued thereafter in the ratio of 2:1.
Post this, the stock’s market price was adjusted below Rs 10. In the last one and two years, the counter has corrected 70 per cent and 60 per cent, respectively. In three and five years, the NBFC stock has sprinted 650 per cent and 1100 per cent, respectively, resulting in wealth gain for investors.
