On 05-08-2024, the Securities and Exchange Board of India (‘SEBI’) notified the SEBI (Alternative Investment Funds) (Fourth Amendment) Regulations, 2024 to amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. They came into force on 06-08-2024.
Key Points:
-
The first proviso to Regulation 13(5) has been amended to state that a large value fund for accredited investors may be permitted to extend its tenure for up to five years upon approval of two-thirds of the unit holders by value of their investment.
Earlier, permission could have been given for an extension of tenure beyond two years, subject to the terms of the contribution agreement, other fund documents, and conditions by the Board.
-
Regulation 16 (1)(c) has been amended to specify that Category I Alternative Investment Funds shall not borrow funds or engage in any leverage for the purpose of making investments or otherwise. Earlier, the purpose was not specified in the provision.
-
Regulation 17 (1)(c) has been amended to specify that Category II Alternative Investment Funds shall not borrow funds or engage in any leverage for the purpose of making investments or otherwise. Earlier, the purpose was not specified in the provision.