The Securities and Exchange Board of India (SEBI), on April 25, 2024, notified the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
The following has been stated-
•In regulation 29A, after sub-regulation (7), the “(8) No Alternative Investment Fund shall launch any new liquidation scheme under this regulation after the notification of the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2024: Provided that any liquidation scheme launched by an Alternative Investment Fund prior to the notification of the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2024 shall continue to be governed by regulation 29A and the other provisions of these regulations till such schemes are wound up.” new sub-regulation (8) shall be inserted.
•In regulation 20, after sub-regulation (19), the “(20) Every Alternative Investment Fund, Manager of the Alternative Investment Fund and Key Management Personnel of the Manager and the Alternative Investment Fund shall exercise specific due diligence, with respect to their investors and investments, to prevent facilitation of circumvention of such laws, as may be specified by the Board from time to time. Explanation: “laws” shall include Acts, Rules, Regulations, Guidelines or circulars framed thereunder that are administered by a financial sector regulator, including those administered by the Board.” new sub-regulation (20) shall be inserted.
•After regulation 29A and before regulation 30, the “Dissolution Period. 29B. (1) A scheme of an Alternative Investment Fund may enter into a dissolution period in the manner and subject to such conditions as may be specified by the Board. (2) The scheme entering into a dissolution period shall file an information memorandum with the Board through a merchant banker in the manner as may be specified by the Board. (3) The dissolution period of a scheme of an Alternative Investment Fund shall not be more than the original tenure of the scheme and shall not be extended in any manner upon expiry of the dissolution period. (4) The scheme of the Alternative Investment Fund shall not accept any fresh commitment from any investor and shall not make any new investment during the dissolution period.” regulation shall be inserted.
[Notification No. SEBI/LAD-NRO/GN/2024/168]
