Simplification of requirements for grant of accreditation to investors
Summary
The circular permits investment managers to execute contribution agreements before receiving an accreditation certificate, subject to specific conditions regarding corpus calculation and fund receipt. It removes the mandatory requirement for a detailed net-worth break-up annexure and clarifies that specifying actual net worth in the certificate is optional for chartered accountants. The document mandates inclusion of compliance with these provisions in the Compliance Test Report and lists required documents for accreditation in Annexure A.
Text
Pending receipt of certificate from an accreditation agency, based on the investment manager’s assessment of the investor’s eligibility criteria, the investment manager may finalise/execute the contribution agreement, and initiate related operational procedures, subject to the following conditions
Any commitment made by such investor shall not be included in calculation of corpus of the scheme until such investor obtains accreditation certificate from an accreditation agency.
Schemes of AIFs shall receive funds from such investors only after they obtain accreditation certificate from an accreditation agency.
the requirement of submitting detailed break-up of net worth (as Annexure to net worth certificate) shall be done away with. Further, it is being clarified that it is optional for the chartered accountant to specify the actual net-worth in the net-worth certificate
The trustee/sponsor/manager of AIF, as the case may be, shall ensure that the ‘Compliance Test Report’ prepared by the manager in terms of Chapter 15 of Master Circular for AIFs, includes compliance with the provisions of this circular.
This circular shall come into force with immediate effect.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulations 2(1)(ab) and 36 of AIF Regulations
The Applicant shall furnish self-certified copies of the following documents: Proof of Identity and Address, Authorization to seek accreditation, Proof of financial information, Undertaking
Source: SecMarx — Simplification of requirements for grant of accreditation to investors. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.