The Securities and Exchange Board of India (SEBI) on January 12, 2024, issued a Consultation Paper on providing flexibility to Alternative Investment Funds Venture Capital Funds, and their investors to deal with unliquidated investments of their schemes beyond the expiry of tenure.
The objective of this consultation paper is to seek comments/views/suggestions from the public on the proposals to provide flexibility to AIFs registered under the SEBI (AIF) Regulations, 2012, and their investors to deal with unliquidated investments of their schemes beyond the expiry of tenure.
The following proposals have been stated namely: -
• It states that the Schemes of AIFs whose Liquidation Period has already expired or would be expiring within one month from the date of notification in this regard, and do not have any pending investor complaint with respect to non-receipt of funds/investments, shall be given a fresh one-time Liquidation Period.
• The one-time Liquidation Period of one year shall begin from the date of notification of the amendment to AIF Regulations in this regard.
• It states that During the Liquidation Period, these AIFs shall either fully liquidate their investments or distribute their investments in-specie or opt for the Dissolution Period/Process.
• The tenure of Migrated VCFs is to be equal to the residual tenure as disclosed in the PPM under VCF Regulations. In case a definite tenure is not given in the PPM, the tenure shall be defined at the time of migration with the approval of 75% of investors by the value of their investment in the scheme
Public comments are invited for the proposals attached to the document The comments/suggestions may be provided in an MS Excel file as per the format
Comments may be sent to the following, at the latest by February 02, 2024, in any of the following manners namely: -
(i) Preferably by email to [email protected], with a copy to Shri Sachin Kisan Jadhav, Manager ([email protected]) and Shri Kunwar Abhay Singh, Manager ([email protected])
(ii) By post to: Shri Sanjay Singh Bhati, Deputy General Manager, Alternative Investment Fund and Foreign Portfolio Investors Department, Securities and Exchange Board of India, SEBI Bhavan, C4-A, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai -400051
