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

Process for Crediting of units of Alternative Investment Funds in dematerialized form

11-Dec-2023 | SEBI/HO/AFD/PoD1/CIR/2023/186

SEBI has issued a circular on Credit of units of AIFs in dematerialized form in reference to circular no. SEBI/HO/AFD/PoD1/CIR/2023/96 dated June 21, 2023 on -Issuance of units of AIFs in dematerialized form. By virtue of this circular it has been decided to specify the process to be followed for dematerializing / crediting the units issued by Alternative Investment Funds. Key points of the circular:- 1. Schemes of AIFs with corpus equal to or above INR 500 Crore shall credit units already issued to existing investors (on-boarded prior to November 01, 2023) who have not provided their demat account details, into Aggregate Escrow demat Account latest by January 31, 2024. Units already issued by such schemes to existing investors who have provided demat account details shall be credited to respective investors demat accounts at the earliest, but not later than January 31, 2024 2. Schemes of AIFs with corpus < INR 500 Crore shall credit units issued to their investors who have not provided their demat account details by April 30, 2024, into Aggregate Escrow Demat Account latest by May 10, 2024. Units issued by such schemes as on April 30, 2024, to investors who have provided demat account details shall be credited to respective investors demat accounts at the earliest, but not later than May 10, 2024. 3. As and when such investors provide their demat account details to the AIF, their units held in Aggregate Escrow Demat Account shall be transferred to the respective investors demat accounts within 5 working days. 4. Managers of AIFs shall maintain investor-wise KYC details of units held in Aggregate Escrow Demat Account, including name, PAN and bank account details, along with audit trail of the transactions and report the same to Depositories and Custodians on a monthly basis.

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