Secura Investment Management

Funds managed

Fund NameAsset ClassLicense
Secura India Realty AIFreal estateSEBI CAT 2

About

Secura Investment Management (India) Private Limited is a Private incorporated on 19 May 2008. It is classified as Non-govt company and is registered at Registrar of Companies, Ernakulum. Company is promoted by reputed professionals in association with reputed professionals in business to provide investments management services to venture capital funds, real estate investment trusts, mutual funds, offshore funds, private equity funds or any other funds. The Fund launched by Secura is the First SEBI Registered real estate Venture Capital in Kerala and First Shariah Compliant Venture Capital Fund in India. Over the period Secura has created its own unique benchmark in the Venture Capital Industry as well as in the Shariah complied financial models in India.

Islamic Finance

Secura, a SEBI-registered real estate venture capital fund has been certified as India’s first Shariah compliant real estate VCF. This fund was formed as a contributory trust under the provisions of Indian Trust Act, 1882. The trustee of the Fund is IL&FS Trust Company Ltd. The Shariah certification of the fund is done by Taqwaa Advisory and Shariah Investment Solutions (TASIS).

Secura Investment Management (India) Pvt Ltd (Secura), was set up by a team of professionals to achieve the following Long Term Goals

– To provide our Fund Contributors with superior risk adjusted and ethical returns

– To provide our Portfolio Companies with stable long term funds and expert business guidance

– To provide our Employees with an enriching and socially fulfilling work environment

– To enable our Promoters to utilize their expertise and experience to mentor entrepreneurs and obtain reasonable, sustainable and ethical returns

Key staff

Mehaboob MA – Managing Director – Former Managing Director of Hi-LITE Builders Pvt. Ltd, Mehaboob MA was instrumental in developing the Focus Mall- Kerala’s first shopping mall and Hi-LITE Mall- North Kerala’s biggest retail destination in Calicut. Former Hon. Secretary of The Malabar Chamber of Commerce, currently, he is the Vice Chairman of CREDAI, Kerala, a core committee member of Retailer’s Association of India, Kerala chapter, a regular speaker at India Shopping Centre Forum and a member of the Business Advisory Panel for Retail, a Kerala State Govt. Initiative.

Noushad KP Director – Noushad KP was former Director of Hi-LITE Builders Pvt. Ltd., with more than 15 years of experience in real estate sector. He was a Practicing Company Secretary earlier at Calicut and Vice Chairman of the Calicut Chapter of Institute of Company Secretaries of India. He is the Managing Director of Puresouth Hospitality Pvt Ltd.

Investment philosophy

Venture Capital Financing, is a mechanism to institutionalize innovative entrepreneurship. Venture Capital helps enterprises, which may not fall within the norms of conventional financing. In the case of high growth and high risky ventures, like real estate projects and those promoted by new entrepreneurs, the intellectual capital by way of the project idea/concept and the relevant track record are often the major contributions from the promoters. At this stage, the venture capitalist steps in with his contribution by way of equity / equity related instruments besides other value added & need-based services such strategic management support etc. After the enterprise settles down with profitable operations & normally with capability to raise funds from conventional sources, the venture capitalist exits by selling out his shareholding. In other words, Venture Capital Financing denotes the investment in high-risk ventures willing to share in the risk of the project, with the expectation of commensurate levels of returns.

The VC investment in any real estate projects are typically at “Land Cost” stage, means a fund invests and collaborates with developers/land owners from inception to completion. Along with the geographical spread of investments, the fund capitalizes on both the early mover advantage as well as reaps the benefits of economies of scale in the implementation/ construction stage of its various investments/ projects. A VC real estate fund reduces the risk profile of real estate as an asset class by offering diversified investment portfolio managed by experienced investment managers. Thus, it provides the benefit of a defensive investment alternative.

Secura delivers a unique business model to achieve the reasonable return at every stage of business cycle. This is achieved through various thoughtful processes. Generally Secura Partnering with reputed entrepreneurs to develop and enhance their property development real estate project portfolio through funding the special purpose vehicles from the stage of purchase of land itself. Every investment by Secura will be after a careful study of and analysis with the restrictions and guidelines of Shariah. Through these multilevel processes Secura creates unique model of investment and business in Indian economy as well as Shariah economy.

About Realty Fund

Secura India Real Estate Fund

Domestic Scheme 1

Secura Investment Management (India) Pvt Ltd. is the Investment Manager and manages the Secura India real estate Fund Domestic Scheme 1, which has been organised as a scheme of the Secura India real estate Fund, a SEBI registered close-ended venture capital fund with a focus on the Indian real estate and allied sectors. 

The SECURA IMC seek to make investments in privately negotiated equity and equity linked investments in unlisted or listed companies in India or in India-connected opportunities in other countries subject to the prevailing regulations and laws in India. It is anticipated that the Fund will invest in sectors related to real estate related activities. The investments and operations of the Fund shall in addition be subject to such further restrictions as are deemed necessary by the Shariah Advisor to the Fund to ensure that the same are in compliance with the Shariah.

The Fund is invested by investors with a minimum amount of 5 Lakhs without maximum caps as per the SEBI (The Securities and Exchange Board of India) Regulations

The Shariah Advisor of the fund is Mumbai based Taqwaa Advisory and Shariah Investment Solutions Private Limited (TASIS) and the Trustee is IL & FS Trust Company Limited.

Domestic Scheme 2

Secura Investment Management (India) Pvt Ltd. is the Investment Manager and manages the Secura India real estate Fund Domestic Scheme 2, which has been organised as a scheme of the Secura India real estate Fund, a SEBI registered close-ended venture capital fund with a focus on the Indian real estate and allied sectors.

The Investment Manager seek to make investments in privately negotiated equity investments in unlisted companies in India subject to the prevailing regulations and laws in India. It is anticipated that the Fund will invest in sectors related to real estate related activities. The investments and operations of the Fund shall in addition be subject to such further restrictions as are deemed necessary by the Shariah Advisor to the Fund to ensure that the same are in compliance with the Shariah. 

The Fund is invested by investors with a minimum amount of 5 Lakhs without maximum caps as per the SEBI (The Securities and Exchange Board of India) Regulations 

The Shariah Advisor of the fund is Mumbai based Taqwaa Advisory and Shariah Investment Solutions Private Limited (TASIS) and the Trustee is IL & FS Trust Company Limited.

Media

Alternative Investment funds based on Islamic banking tenets yet to take off in India

Mehaboob MA, managing director, Secura Investment Management, told FE that only a Bengaluru-based company has managed to launch a Sharia-complaint VCF apart from Secura. He added that direct FDI from Sharia funds are happening in major infrastructure projects, but Indian fund managers are unable to raise funds from domestic investors.
Tightening of regulations by SEBI has put pressure. For instance, as per the latest Sebi norm, the minimum investment to the VCF has been fixed at Rs 1 crore, against Rs 5 lakh when we started,” he said. The Kerala government was also not successful in raising Sharia-complaint funds through the NBFI, Cheraman Financial Services.

Mehaboob still believes that Sharia-based funds have great potential in India as a large section of the Muslim population believes in not taking interest.

https://www.financialexpress.com/industry/alternative-investment-funds-based-on-islamic-banking-tenets-yet-to-take-off-in-india/1383226/

First Sharia-compliant fund to focus on real estate

India’s first fully Sharia-compliant and SEBi registered fund launched its third investment fund, Realty AIF 1 (Alternative Investment Fund) on Monday. The fund is meant for the real estate sector with IL&FS Trust Company acting as trustee for the fund.

Promoted by Secura Investment Management (India), the fund’s investments and opera- tions are in compliance with the Islamic finance rule. Targeted to raise `200 crore with the Greenshoe Option of `100 crore more, the minimum in- vestment under the scheme, which will have its first closing on December 31, 2016, is `1 crore, Mehaboob MA, managing director, Secura Investment Management said. The tenure of the fund is seven years from the final closing.

https://www.financialexpress.com/industry/first-sharia-compliant-fund-to-focus-on-real-estate/422002/

Ethical Finance Idea Meet 

Speech given by MA Mehaboob, Secura Investments Management on 20 June 2019 regarding its structure, future plans etc.

https://www.facebook.com/ICIFDelhi/videos/secura-venture-capital/418747375407225/

Analyst questions

  1. As the firms main aim is to encourage Indian Muslims to participate in investment ,did you succeed in it?
  2. In one Speech MD Mehaboob had mentioned Secura will focus on educating new generation to participate in equity market. Till now what measures did you take to spread awareness among them?
  3. Do you face any challenges as your fund is Sharia-complaint? If yes does that effect your returns and what is your strategy to face it?
  4. How is performance of realty funds till now? What returns it has given?

References

http://www.securaindia.com/management-team.php

https://www.zaubacorp.com/company/SECURA-INVESTMENT-MANAGEMENT-INDIA-PRIVATE-LIMITED/U67120KL2008PTC022446

Prepared by Janhavi Poojary June 2021

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