The Securities and Exchange Board of India (SEBI) on January 05, 2024, notified the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2024 further to amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
The following has been stated: -
•In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, –
In regulation 15, in sub-regulation (1), after clause (h), the following new clause shall be inserted, namely, -
(i) Alternative Investment Funds shall hold their investments in dematerialized form, subject to such conditions as may be specified by the Board from time to time: Provided that the requirement under clause (i) of sub-regulation (1) shall not apply to:
(a) investments by Alternative Investment Funds in such type of instruments that are not eligible for dematerialization, (b) investments held by a liquidation scheme of the Alternative Investment Funds that are not available in the dematerialized form, and (c) such other investments by Alternative Investment Funds and such other schemes of Alternative Investment Funds as may be specified by the Board from time to time.
•In regulation 20, after sub-regulation (11), the following new sub-regulation shall be inserted, namely, -(11A) A Custodian which is an associate of the Sponsor or Manager of an Alternative Investment Fund may act as a custodian for that Alternative Investment Fund.
They shall come into force on January 05, 2024.
The detailed notification is given in the document attached below.
[Notification No. No. SEBI/LAD-NRO/GN/2024/163.]
