The Securities and Exchange Board of India (SEBI) on January 11, 2024, issued a Circular regarding Foreign investment in Alternative Investment Funds.
This shall come into force on January 11, 2024
The following has been stated namely: -
• This has a reference to the notification dated March 07, 2023, and September 04, 2023 has amended the Prevention of Money Laundering (Maintenance of Records) Rules, 2005, inter-alia, that has revised the thresholds for determining the beneficial ownership.
• This has a further reference to para 4.1.2. under Chapter 4 of SEBI Master Circular No. SEBI/HO/AFD/PoD1/P/CIR/2023/130 dated July 31, 2023, for AIFs that have been modified
• It states that in case an investor who has been already on-boarded to the scheme of an AIF, does not meet the revised condition as specified above, the manager of the AIF shall not down any further capital contribution from such investor for making investment, until the investor meets the said condition.
[Circular No. SEBI/HO/AFD/PoD1/CIR/2024/2]
