The Reserve Bank of India (RBI) on March 10, 2021 has issued a notification under Clause (U) (1) of Section (2) of the Securitisation and Reconstruction of the Financial Assets and Enforcement of the Security Interest Act, 2002 specifying the category I, Alternative Investment Funds (AIF) set up as trust and registered with Securities and Exchange Board of India under Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, as ‘qualified buyers’, subject to the following conditions:
• The AIF which has invested in an asset reconstruction company (ARC) shall not invest in the security receipts issued by that ARC.
• The AIF shall not invest in the security receipts issued on the underlying loans of any of its associate or group company.
• The AIF shall not invest in the security receipts backed by non-performing assets of banks which hold equity of more than 10% in that AIF.
[Notification No. DoR. FIN. No. 08/26.03.001/2020-2021]
