Specific Due Diligence – Alternative Investment Funds

The Securities and Exchange Board of India ("SEBI"), vide notification dated October 8, 2024, has outlined specific due diligence requirements for Alternative Investment Funds ("AIFs"), their managers, and key management personnel with respect to investors and investments of the AIF. Some of the key points are as follows:

1. carrying out due diligence for investments from countries sharing land borders with India, in line with the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. For every scheme of AIFs where 50% or more of the corpus of the scheme is contributed by the prescribed investors, necessary due diligence as per the implementation standards formulated by the Standard Setting Forum for AIFs must be carried out prior to the investment;