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ARTICLE · 12 APRIL 2024

Key Amendments To SEBI`s AIF Regulations

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The SEBI recently notified amendment to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 ...

IndiaCorporate/Commercial Law

The SEBI recently notified amendment to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 ("AIF Regulations"), which have come into force from January 5, 2024 onwards (the "Amendment"). The Amendment introduces three pertinent modifications to the existing AIF regulations, which are enlisted below:

S. No.

Nature of Amendment

AIF Regulation (for reference)

Crux of Amendment

1.

Insertion/Addition

Regulation 15(1)(i)

General Investment Conditions

Mandate for the AIF investments to be in dematerialised form.

2.

Substitution

Regulation 20(11)

General Obligations

Mandatory appointment of a custodian by the sponsor or manager of AIF. It is to be ensured by all AIFs. The custodian is to undertake reporting and disclosure requirements specified by SEBI.

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