Amendment to the SEBI AIF Regulations
PUBLISHED ON: 19-06-2023
The SEBI (Alternative Investment Funds) Regulations, 2015 (“AIF Regulations”) have been amended (available here) and the notification shall come into force with effect from June 16, 2023, unless specified otherwise. An overview of the key changes is set out hereunder:
- AIFs are now required to issue units in dematerialised form, subject to the conditions specified by SEBI from time to time.
- AIFs would have to obtain fresh certifications before the expiry of the existing certification.
- The manager of the AIF is now required to appoint a Compliance Officer, who would be: (i) responsible for monitoring compliance with all the applicable laws; and (ii) required to independently report any non-compliance to SEBI maximum within 7 working days.
- SEBI has clarified that in specie distribution of the assets of each scheme of the AIFs is permitted.
- The manager of an AIF is required to ensure that the AIF appoints an independent valuer to conduct the valuation of investments of the scheme of AIFs as specified by SEBI.
- AIFs are permitted to launch a close ended liquidation scheme by filing a placement memorandum with SEBI, through a merchant banker, for the purpose of liquidating the unliquidated investments purchased from its scheme whose tenure has expired.
