GENESIS — Investment Operations

Hedge Fund Operations Platform for
Category III AIF Managers

A purpose-built operations platform for SEBI-registered Category III Alternative Investment Funds running hedge fund strategies. GENESIS supports long/short equity, derivatives tracking, leverage monitoring, daily NAV computation, and SEBI LVF compliance — enabling sophisticated fund operations without the operational overhead.

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Cat III AIF

Compliance-Ready

Daily NAV

Automated Computation

Long/Short

Portfolio Tracking

SEBI LVF

Reporting Ready

The Problem

Why Existing Approaches Fall Short

Manual processes, fragmented tools, and legacy systems create compounding inefficiencies that limit speed, accuracy, and risk visibility.

Hedge Fund Operations Require Daily NAV Precision

Category III AIFs require daily NAV computation — covering long positions, short positions, derivatives P&L, accrued management fees, and fund expenses — with no room for error.

Short Selling and Derivatives Tracking is Complex

Long/short portfolios with equity, futures, options, and other derivatives require separate accounting logic, margin tracking, and P&L computation that generic systems handle poorly.

SEBI LVF Reporting Requirements Are Demanding

Category III AIFs classified as Large Value Funds (LVF) face additional SEBI reporting obligations — systemic risk reporting, exposure disclosures, and investor-level reporting that require structured data.

Leverage Monitoring is a Regulatory and Risk Requirement

SEBI caps Category III AIF leverage at specific limits. Real-time monitoring and breach prevention requires systems that track gross and net exposure across complex portfolios.

Hedge Fund Operations Pain Points

Daily NAV calculated manually in spreadsheets — error-prone

Short positions tracked separately from longs — reconciliation issues

Derivatives P&L computation done outside accounting system

SEBI LVF reporting requires manual data aggregation

Leverage monitoring done post-trade rather than real-time

Investor capital accounts updated daily with significant manual effort

How It Works

How GENESIS Powers Hedge Fund Operations

Automated daily operations for Category III AIF hedge funds — from trade processing through NAV computation and investor reporting.

Step 01

Portfolio & Trade Setup

Configure fund structure, approved instruments, leverage limits, and strategy parameters. Process daily trades across equities, futures, options, and other permitted instruments.

Step 02

Real-Time Position Tracking

Maintain real-time long and short positions, outstanding derivative contracts, margin utilization, and cash balances — with live P&L computation throughout the trading day.

Step 03

Daily P&L Computation

Compute daily realized and unrealized P&L across all positions — equities (long and short), futures (daily MTM), options (premium and delta P&L), and FX — with exchange feed integration.

Step 04

Leverage Monitoring

Continuous computation of gross exposure, net exposure, and leverage ratios — with SEBI Category III AIF limit monitoring and pre-trade breach prevention.

Step 05

Daily NAV Computation

Automated end-of-day NAV computation — applying portfolio valuation, management fee accruals, expense accruals, and distributable income — with approval workflow before investor NAV publication.

Step 06

Investor Reporting & LVF Compliance

Generate daily/weekly investor portfolio statements, SEBI LVF systemic risk reports, and regulatory disclosures — with automated data feeds to regulatory submissions.

Key Capabilities

Hedge Fund Operations Capabilities

Institutional-grade hedge fund operations platform for India's Category III AIF ecosystem.

Long/Short Portfolio Management

Track long and short equity positions simultaneously — including borrow costs, short rebates, and dividend payment obligations on short positions.

Derivatives Position Accounting

Manage futures (daily MTM, margin calls), options (premium, delta, expiry handling), and structured products with appropriate accounting treatment for each instrument type.

Daily NAV Engine

Automated end-of-day NAV with exchange market data integration, corporate action application, fee accruals, and configurable validation rules before publication.

Leverage Monitoring & Pre-Trade Checks

Real-time gross and net exposure computation, SEBI Category III AIF leverage limits monitoring, and pre-trade order checks that prevent limit violations.

Margin Management

Track initial and variation margin across exchange-traded derivatives — with automatic margin call generation and cash management integration.

Prime Broker Integration

Automated data feeds from prime brokers for short positions, stock borrow, margin balances, and settlement confirmations.

SEBI LVF Compliance Reporting

Automated generation of SEBI Large Value Fund systemic risk reporting, investor disclosure reports, and Category III AIF quarterly filings.

Investor Capital Accounts

Daily computation of each investor's capital account value, performance attribution, management fee charges, and performance fee accruals.

Risk Analytics

Portfolio risk metrics — VaR, beta, tracking error, sector exposure, top holdings concentration — computed daily and available for portfolio manager review.

Business Impact

Measurable Outcomes for Your Institution

Our customers report consistent improvements across turnaround time, accuracy, operational efficiency, and risk management.

Daily

Automated NAV

End-of-day NAV computation completed within minutes of market close — without manual input

100%

Leverage Compliance

Real-time monitoring prevents SEBI Category III AIF leverage limit breaches

80%

Operations Time Savings

Automation across trade processing, NAV computation, and investor reporting

Zero

Reconciliation Breaks

Automated prime broker and custodian reconciliation eliminates end-of-day breaks

Who It's For

Built for the Teams That Matter Most

Designed with input from practitioners across credit, risk, operations, compliance, and technology functions.

Portfolio Managers

Real-time portfolio P&L, risk analytics, and leverage metrics — enabling confident management of long/short and derivative-heavy strategies.

Fund Operations Teams

Automated trade processing, NAV computation, and investor reporting — significantly reducing daily operational workload.

Risk Management Teams

Continuous leverage monitoring, pre-trade compliance checks, and risk limit management to ensure regulatory and fund-level risk parameters are maintained.

Compliance Officers

SEBI Category III AIF compliance monitoring, LVF reporting generation, and investor disclosure management from one platform.

CFO & Finance Teams

Fund-level financial statements, management fee accruals, performance fee tracking, and audit-ready records for hedge fund entities.

Investor Relations Teams

Daily investor NAV updates, monthly performance reports, and on-demand portfolio statements — delivered professionally and on schedule.

Use Cases

Real Scenarios. Practical Results.

How financial institutions apply this solution across their business operations.

Use Case 01

Long/Short Equity Fund Daily Operations

Process daily long and short equity trades, compute mark-to-market P&L, track short borrow costs, and compute end-of-day NAV for a long/short equity Category III AIF.

Long/Short EquityDaily NAVCategory III AIF

Use Case 02

Derivatives-Heavy Strategy Operations

Manage a Category III AIF running long/short strategies with significant F&O usage — handling futures margin calls, options premium accounting, and daily derivatives P&L computation.

F&O TradingDerivatives AccountingMargin Management

Use Case 03

SEBI LVF Systemic Risk Reporting

Automate SEBI Large Value Fund quarterly systemic risk reporting — aggregating exposure data, leverage metrics, and counterparty concentration for regulatory submission.

LVF ComplianceSEBI ReportingSystemic Risk

Use Case 04

Multi-Strategy Hedge Fund

Manage a multi-strategy Category III AIF running equity, credit, and arbitrage strategies simultaneously — with separate strategy-level P&L and a combined fund-level NAV.

Multi-StrategyStrategy AttributionFund NAV

Use Case 05

Investor Capital Account Daily Update

Compute and update individual investor capital accounts daily — with accurate management fee accruals, performance fee tracking against high watermarks, and NAV-based units.

Investor AccountsDaily NAVPerformance Fee

Use Case 06

Prime Broker Reconciliation

Automate daily reconciliation with prime broker data for short positions, stock borrow, and margin balances — eliminating end-of-day reconciliation breaks.

Prime BrokerReconciliationShort Positions

Explore Connected Capabilities

These solutions work alongside this one to deliver a more complete, end-to-end workflow for your institution.

FAQs

Frequently Asked Questions

Does GENESIS support both long and short equity positions?

Yes. GENESIS maintains separate long and short position books — tracking long positions at purchase cost and market value, and short positions with borrow costs, short rebates, and dividend payment obligations. P&L is computed correctly for both long and short positions, with combined portfolio NAV reflecting net exposure.

How does GENESIS handle daily F&O accounting for hedge funds?

GENESIS processes futures and options at instrument level — tracking open futures contracts (entry price, daily MTM, margin utilization), options (premium, delta, time value), and handling expiry events automatically. Daily MTM P&L is computed against exchange closing prices and posted to fund accounts.

What SEBI Category III AIF leverage limits does GENESIS monitor?

GENESIS monitors SEBI Category III AIF leverage limits — currently permitting leverage up to 2x (300% gross exposure for long/short strategies under SEBI AIF regulations). The platform tracks gross exposure, net exposure, and leverage ratios in real-time, with pre-trade checks that prevent orders that would breach limits.

How does GENESIS handle the daily NAV computation process?

Post market close, GENESIS receives exchange settlement prices (from BSE/NSE data feeds), applies closing prices to all positions, computes unrealized P&L changes, processes realized P&L from the day's trades, accrues management and performance fees, and produces a preliminary NAV. After reviewer approval, the NAV is published to investors and recorded as the official unit price for the day.

What is SEBI LVF (Large Value Fund) and how does GENESIS help?

SEBI designates Category III AIFs above a certain corpus threshold as Large Value Funds (LVFs), subject to additional reporting requirements — including systemic risk reporting, quarterly disclosures to SEBI, and additional investor-level reporting. GENESIS automates LVF reporting by aggregating exposure, leverage, and counterparty data into the required formats for regulatory submission.

Can GENESIS integrate with prime brokers used by Indian hedge funds?

Yes. GENESIS integrates with prime brokerage services provided by Indian brokers and international prime brokers operating in India — receiving daily files for short position balances, stock borrow rates, margin requirements, and settlement confirmations. The integration supports both FTP file-based and API-based data feeds.

Hedge Fund Operations Platform forCategory III AIF Managers