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A collective investment scheme (CIS) is an investment scheme offered by any company, where a group of people come together and pool their money into an asset. This invested money is used with the objective of getting profits, and income and then is managed on behalf of the investors. However, the returns earned on the asset are then divided amongst the group based on the proportion of their investment.
Additionally, a collective investment scheme (CIS) is an arrangement or scheme that should satisfy certain conditions like; as individuals pool their money together to invest in a particular asset or assets, earn returns on the money so invested, and returns earned from the investment shall be divided between the investors based on the agreement signed by them at the time of making the investment. Meanwhile, the control of the CIS scheme and its management is not in the hands of the investors. Understanding collective investment scheme regulations is crucial.
According to the Securities and Exchange Board of India (Collective Investment Schemes) Regulations, 1999, no person other than the Collective Investment Scheme Management Company can launch a collective investment scheme. Therefore, any person proposing to carry on any Collective Investment Scheme Management Company shall make an application to the Board to grant collective investment scheme SEBI registration.
It is important to note that an existing collective investment scheme in order to raise money from investors or to launch any new scheme must obtain a certificate of registration from the SEBI. Therefore, as far as the collective investment scheme is concerned, SEBI formulates policies and regulates and supervises CIS to protect investors' interests.
Investing money into the collective scheme investment facilitates a wide range of benefits. Some of the major advantages include the following.
Unlike individual investing, a CIS pools funds, allowing investors to access a wider range of assets and diversify risk.
With a large amount of pooled capital, it facilitates investors to invest in markets that are difficult to access directly.
Unlike investing in just a few assets, a Collective Investment Scheme (CIS) allows for a broader portfolio, which helps lower the risk.
Since the costs are shared among all investors, larger transactions in a Collective Investment Scheme (CIS) are less expensive for each investor compared to what an individual would pay on their own.
Collective investment schemes like mutual funds and ETFs offer the benefit of a skilled fund manager, reducing investment risk.
The operations of the collective investment schemes are designed with simplicity and straightforward. Investors don’t have to spend time on the day-to-day administration of their investments.
With the help of expert guidance, one can build a tax-efficient investment portfolio under CIS.
Applicants seeking Collective Investment Scheme SEBI registration must meet the eligibility criteria to obtain a CIS certificate from the regulatory board.
Eligibility Checklist for CIS Registration:
The list of documents required for CIS company registration in India is as follows:
The step-by-step collective investment schemes company registration process in India is as follows:
Submission of Application
The applicant shall fill out Form A as prescribed under the SEBI regulations and file the required details.
Application Fees
This application form shall be submitted to the concerned board with the application fees of Rs 25,000.
Board Confirmation
The board may, on receipt of an application and on being satisfied, call upon the applicant to proceed with registration fees
Registration Fees
Following the board confirmation, the applicant shall pay the Rs 10 lakh as registration fees. The filing fees for offer document is Rs 25 thousand.
Granting of Certificate
The concerned Board on receiving the registration fee, shall grant the registration certificate.
Appeal for Rejection
On rejection of a registration application, the applicant shall be given one month to remove such objections as may be indicated by the Board.
Compliance with Terms and Conditions
Lastly, after obtaining of the CIS company registration, such company shall comply with the terms and conditions according to the SEBI.
Some of the major tax implications of CIS company are as follows:
CIS company must obtain UTR, a unique identification number required for dealing with tax-related matters.
Taxation is based on the underlying investments.
It is treated as a separate legal entity, thus subject to corporate income tax.
Here, given below is the list of schemes and arrangements that do not constitute a collective investment scheme in India:
The applicant, after obtaining a CIS company registration, needs to fulfil the mandatory post-compliance checklist as given below:
Director of CIS company cannot serve as a director in another Collective Investment Management Company (CIMC) unless they are an independent director and have obtained approval from the board of other CIMC.
Director of CIS company cannot serve as a director in another Collective Investment Management Company (CIMC) unless they are an independent director and have obtained approval from the board of other CIMC.
The CIMC must immediately inform the Board of any significant changes in the information provided earlier that could affect the certificate granted.
The CIMC must immediately inform the Board of any significant changes in the information provided earlier that could affect the certificate granted.
Prior approval from the trustee is required for the appointment of a director.
Prior approval from the trustee is required for the appointment of a director.
Collective investment scheme management companies must comply with the SEBI Act and relevant regulations.
Collective investment scheme management companies must comply with the SEBI Act and relevant regulations.
The Collective Investment Scheme management company must comply with KYC norms as specified by the SEBI.
The Collective Investment Scheme management company must comply with KYC norms as specified by the SEBI.
All payments for the subscription of units must be made via cheque, demand draft, or other banking channels but not in cash.
All payments for the subscription of units must be made via cheque, demand draft, or other banking channels but not in cash.
The difference between a collective investment scheme and AIF are as follows:
The difference between collective investment schemes and mutual funds are as follows:
| S.no. | Features | Collective Investment Schemes | Mutual funds |
|---|---|---|---|
| 1 | Structure | Managed by a custodian or trustee. | Managed by the fund manager. |
| 2 | Regulation | Less regulatory requirements. | Strict regulatory requirements. |
| 3 | Liquidity | Less liquidity. | High liquidity. |
| 4 | Accessibility | Not so accessible to individual investors. | Accessible to individual investors. |
| 5 | Fees | Lower fee structure. | Variety of fee structures. |
| 6 | Investment Goals | Typically designed for institutional investors with long-term investments. | Wide range of investment options, like balanced portfolios, growth, and income. |
Businesses shall choose collective investment scheme registration in India because of the following reasons:
Our experts assist in securing a collective investment scheme registration in India.
We ensure 5x your documentation work and provide end-to-end support in the filing and registration of CIS Company.
Our experts have more than a decade of experience, so we ensure effortless CIS Company registration.
With a robust network of 500+ SEBI experts, we ensure that your CIS company registration goes smoothly.
Our 99% success rate in accomplishing successful CIS registration is a milestone in itself.
As we extend PAN India support, entrepreneurs all over India trust us for SEBI registration services.
Our seasonal professionals work in the direction of pooling diversified portfolios within a desired time.
Our strategic approach helps protect the interests of investors and maintain transparency in the system.
End-to-end support and assistance post Collective Investment Scheme Registration.
Here given below is the list of frequently asked questions on Collective Investment Schemes company registration:
Written by Aarya Pokharel. Last updated on Nov 11 2025, 09:48 PM
Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.
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