Change in reporting norms for Category III Alternative Investment Funds (AIFs) regarding investment in commodity derivatives market
Summary
This circular revises the reporting formats for Category III Alternative Investment Funds regarding their investments in commodity derivatives. It mandates that these funds submit monthly or quarterly reports using the new formats starting from the period ended September 30, 2017. The directive is issued under Section 11(1) of the SEBI Act to ensure proper monitoring of such investments.
Text
Category III AIFs are allowed to participate in the commodity derivatives market subject to conditions including investing not more than ten percent of investable funds in one underlying commodity and adhering to SEBI-specified reporting requirements.
The reporting formats for Category III AIFs are revised to capture information pertaining to investment in commodity derivatives as per the enclosed Annexure, modifying the earlier circular CIR/IMD/DF/10/2013.
All Category III AIFs are advised to submit the monthly/quarterly report in the revised format for the period ended September 30, 2017 onwards.
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 investor interests and regulate the securities market.
Source: SecMarx — Change in reporting norms for Category III Alternative Investment Funds (AIFs) regarding investment in commodity derivatives market. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.