Processing of applications for registrations of AIFs and launch of schemes
Summary
SEBI clarifies the processing of AIF registration applications involving Investment Committees with external members pending regulatory clarification. Applications proposing committees with external resident Indian citizens are processed immediately, while those with non-resident external members are held in abeyance. This directive is issued under Section 11(1) of the SEBI Act to regulate the securities market and protect investor interests.
Text
SEBI has written to Government and RBI seeking clarity on the applicability of clause (4) of Schedule VIII under FEM (Non-debt Instruments) Rules, 2019 to investment made by an AIF whose Investment Committee approves investment decisions and consists of external members who are not ‘resident Indian citizens’.
The applications wherein Investment Committee proposed to be constituted to approve investment decisions of AIF includes external members who are ‘resident Indian citizens', shall be duly processed.
The applications wherein Investment Committee proposed to be constituted to approve investment decisions of AIF includes external members who are not ‘resident Indian citizens’, shall be considered only after receipt of clarification as stated in Para 3 above.
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 — Processing of applications for registrations of AIFs and launch of schemes. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.