SEBI has amended and notified on March 16, 2022, Regulation 15 (1) (d) of the SEBI (Alternative Investment Funds) Regulations, 2012, so as to provide flexibility to Category III AIFs, including large value funds for accredited investors of Category III AIFs, so as to calculate investment concentration norms either by investable funds or by net asset value of the scheme while investing in listed equity of an investee company. In regards to the above, the following has been specified via this Circular:
- Existing Category III AIFs may choose to calculate investment concentration norm based on investable funds with the approval of their trustees or board of directors or designated partners, as the case may be, and inform the same to their investors within 30 days from the date of the issuance of this circular.
- In the placement memorandum of their schemes all Category III AIFs must disclose the basis for calculating investment concentration norm.
- The basis by which the investment concentration norm is calculated cannot be changed during the term of the scheme.
- The Category III AIFs who choose to calculate investment concentration norm on the basis of net asset value, shall comply with para 2 of the SEBI circular bearing no. SEBI/HO/IMD/IMD-I/DOF6/P/CIR/2021/663 dated November 22, 2021.
This Circular shall come into effect immediately.
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For further information, please contact:
Vineet Aneja, Partner, Clasis Law
vineet.aneja@clasislaw.com
