SWAMIH Investment Fund

Subject : Government Schemes

Section: Infrastructure

Concept :

SWAMIH (Special Window for Affordable and Mid-Income Housing) Investment Fund has completed 20,557 homes since inception in 2019.
It is India’s largest social impact fund specifically formed for completing stressed and stalled residential projects.

SWAMIH Investment Fund

It is a government backed fund, set up as a Category-II AIF (Alternate Investment Fund) debt fund registered with SEBI (Securities and Exchange Board of India), launched in 2019.
The Fund is sponsored by the Ministry of Finance and is managed by SBICAP Ventures (a State Bank Group company).
Eligibility Criteria:
The real estate projects must be Real Estate (Regulation and Development) Act (RERA)-registered which have been stalled due to a lack of adequate funds.
Each of these projects must be very close to completion.
They must also fall under the ‘Affordable and Middle-Income Project’ category (any housing projects wherein housing units do not exceed 200 sq.m.).
Net-worth positive projects are also eligible for SWAMIH funding.
Net-worth positive projects are those projects for which the value of their receivables (debts owed to them by buyers), plus the value of their unsold inventories is greater than their completion costs and outstanding liabilities

Objective:

It aims to provide financing to enable completion of stalled housing projects and ensure delivery of apartments to homebuyers.
To unlock liquidity in the real estate sector and provide a boost to core industries such as cement and steel.

Alternative Investment Fund

An AIF is a type of investment vehicle that pools money from a variety of investors to invest in assets beyond traditional stocks, bonds, and cash. These assets may include private equity, hedge funds, real estate, commodities, or other non-traditional investments.
AIFs are typically marketed to high-net-worth individuals and institutional investors who have the knowledge and resources to invest in more complex and less liquid assets.
In India, Regulation 2(1)(b) of Securities and Exchange Board of India (SEBI) Regulations (AIFs), 2012 lays down the definition of AIFs.
AIF does not include funds covered under the SEBI (Mutual Funds) Regulations, 1996, SEBI (Collective Investment Schemes) Regulations, 1999 or any other regulations of the Board to regulate fund management activities.