Amendment to SEBI (Alternative Investment Funds) Regulations, 2012
Summary
This circular amends the SEBI (Alternative Investment Funds) Regulations, 2012 to clarify investment frameworks and governance requirements. It permits AIFs to invest in other AIF units without labeling as Fund of AIFs and allows Category III AIFs specific leverage rules. Additionally, it defines key management personnel and provides clarifications regarding the Investment Committee.
Text
AIFs may invest in units of other AIFs without labelling themselves as a Fund of AIFs.
Existing AIFs may invest simultaneously in securities of investee companies and in units of other AIFs, subject to appropriate disclosures in the Private Placement Memorandum (PPM) and with the consent of at least two-thirds of unit holders by value.
AIFs which propose to invest in units of other AIFs shall provide information in their PPMs including proposed allocation, fee attribution, compliance process, and details of investments in related AIFs.
Category III AIFs investing in units of other AIFs may undertake leverage not exceeding two times of the value of portfolio (NAV) after excluding the value of investment in units of other AIFs.
Key management personnel includes members of key investment team disclosed in PPM, employees involved in decision making such as MD/CEO/CIO, and any other person declared as such by the AIF or Manager.
AIFs shall disclose the names of all key management personnel in their PPMs and intimate any change to investors and the Board.
The format for waiver to be furnished by investors in respect of compliance with Regulation 20(8) is specified in Annexure I.
Consent of the investors of the AIF or scheme may not be required for change in ex-officio external members in the investment committee set up by the Manager.
Source: SecMarx — Amendment to SEBI (Alternative Investment Funds) Regulations, 2012. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.