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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) (Fourth Amendment) Regulations, 2024

06-Aug-2024 | SEBI/LAD-NRO/GN/2024/198

SEBI has issued Securities and Exchange Board of India (Alternative Investment Funds) (Fourth Amendment) Regulations, 2024. Through this amendment notification, amendment is made in Regulation 3 (4) (b), omitting the words 'to meet day-to-day operational requirements and'. Further, virtue of this amendments are made:- 1. The proviso to Regulations 13 (5) is substituted and accordingly a large value fund for accredited investors now, may be permitted to extend its tenure up to five years subject to the approval of two-thirds of the unit holders by value of their investment in the large value fund for accredited investors 2. in Regulation 16 (1) (c) regarding the conditions for Category I Alternative Funds, amendment is made for prohibiting the Category I Alternative Funds from borrowing funds directly or indirectly or engaging in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day-to-day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by the Board from time to time. 3. in Regulation 17(c) regarding the conditions for Category II Alternative Funds, amendment is made for prohibiting the Category II Alternative Funds from borrowing funds directly or indirectly or engaging in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day-to-day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by the Board from time to time.

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