Publishing Investor Charter and Disclosure of complaints by AIFs
Summary
SEBI mandates all registered Alternative Investment Funds to publish an Investor Charter and disclose complaint data to enhance transparency. AIFs must include the Charter in Private Placement Memorandums for new schemes and email it to investors of existing schemes. Additionally, AIFs are required to maintain and periodically disclose detailed data on investor complaints received and resolved.
Text
With a view to providing relevant information to investors about the various activities pertaining to AIFs, an Investor Charter has been prepared by SEBI.
all AIFs are advised to take necessary steps to bring the Investor Charter, as per ‘Annexure – X’, to the notice of their investors in the following manner: a) In case of new schemes, disclose Investor Charter in the Private Placement Memorandum (PPM); b) In case of existing schemes, as a one time measure, disclose Investor Charter to the investors on their registered e-mail.
data on investor complaints received against AIFs and each of their schemes and redressal status thereof shall be disclosed by all AIFs as per format at ‘Annexure Y’, in the following manner: a) For new schemes, as a separate chapter in the PPM; b) For existing schemes, by way of updating the PPM within one month of end of each financial year in terms of SEBI Circular No. SEBI/HO/IMD/IMD-I/DOF6/CIR/2021/549 dated April 7, 2021.
For effective monitoring, AIFs shall maintain data on investor complaints as per Annexure Y, which shall be compiled latest within 7 days from the end of quarter.
The provisions of this circular shall come into effect from January 01, 2022.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities market and to promote the development of, and to regulate the securities market.
Source: SecMarx — Publishing Investor Charter and Disclosure of complaints by AIFs. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.