The Securities and Exchange Board of India (SEBI) on June 15, 2023, published the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2023 to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
These regulations shall come into force on June 15, 2023.
The amendments in Regulation 23 which states “Valuation” shall come into force with effect from November 01, 2023
The amendments in Regulation 4 which states “Eligibility Criteria” shall come into force on such date as the Board may by notification in the Official Gazette appoint
The following has been amended namely: -
• In regulation 2 which states “Definitions” in sub-regulation (1),
i) after clause (g), the following new clause shall be inserted, namely, -
“(ga) “Corporate Debt Market Development Fund” means an Alternative Investment Fund set up and making investments in terms of Chapter III-C of these regulations.”
ii) after clause (pa), the following new clauses shall be inserted, namely, -
“(pb) “liquidation period” means a period of one year following the expiry of tenure or extended tenure of the scheme for fully liquidating the scheme of an Alternative Investment Fund.
(pc) “Liquidation scheme” means a close-ended scheme launched by an Alternative Investment Fund only for the purpose of liquidating the unliquidated investments purchased from its scheme, whose tenure has expired.”
• In regulation 3, which states “Registration of Alternative Investment Funds” in sub-regulation (4), after clause (c), the following new clause shall be inserted, namely, -
“(d) specified Alternative Investment Fund under Regulation 19 of these regulations.”
• In regulation 10 which states “Investment in Alternative Investment Fund” after clause (a), the following new clause shall be inserted, namely, -
“(aa) The Alternative Investment Fund shall issue units in a dematerialized form subject to the conditions specified by the Board from time to time.”
• Chapter III which states “Investment Conditions and Restrictions” after Chapter III-B, the following new chapter shall be inserted, namely, -
“Chapter III-C Corporate Debt Market Development Fund”
[Notification No. SEBI/LAD-NRO/GN/2023/132]
