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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2024

05-Jan-2024 | No. SEBI/LAD-NRO/GN/2024/163

SEBI has issued Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2024 to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012-

By virtue of this notification following amendments are being made to the existing regulations-

1. Alternative Investment Funds shall now hold their investments in dematerialised form, subject to such conditions as may be specified by the Board from time to time. Provided that this requirement shall not apply to:

(a) investments by Alternative Investment Funds in such type of instruments which are not eligible for dematerialisation,
(b) investments held by a liquidation scheme of the Alternative Investment Funds that are not available in the dematerialised form, and
(c) such other investments by Alternative Investment Funds and such other schemes of Alternative Investment Funds as may be specified by the Board from time to time.

2. The Sponsor or Manager of the Alternative Investment Fund shall appoint a Custodian registered with the Board for safekeeping of the securities of the Alternative Investment Fund, in the manner as may be specified by the Board from time to time. Provided that the Custodian appointed by the Sponsor or Manager of a Category III Alternative Investment Fund shall keep the custody of the securities and goods received in delivery against the physical settlement of commodity derivative.

3. The Custodian appointed by the Sponsor or Manager of an Alternative Investment Fund shall report or disclose such information regarding investments of the Alternative Investment Fund in such manner as may be specified by the Board from time to time.

4. A Custodian which is an associate of the Sponsor or Manager of an Alternative Investment Fund may act as a custodian for that Alternative Investment Fund only when all the conditions as mentioned in these regulations are met.

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