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

Standardization of the Private Placement Memorandum (PPM) Audit Report

18-Apr-2024 | SEBI/HO/AFD/SEC-1/P/CIR/2024/22

SEBI has issued a circular on Standardization of the Private Placement Memorandum (PPM) Audit Report. By virtue of this circular, following instructions are given: - (i) It is mandatory for AIFs to carry out an annual audit of compliance with the terms of Private Placement Memorandum (PPM). AIFs are required to submit Annual PPM Audit Reports to the Trustee or Board of Directors or Designated Partners of the AIF, Board of directors or Designated Partners of the Manager and SEBI, within 6 months from the end of the Financial Year. (ii) In order to have uniform compliance standards and for ease of compliance reporting, standard reporting format for PPM Audit Report applicable to various categories of AIF has been prepared in consultation with pilot Standard Setting Forum for AIFs (SFA). (iii) The reporting format shall be hosted on the websites of the AIF Associations which are part of SFA within 2 working days of issuance of this circular. The associations shall assist all AIFs in understanding the reporting requirements and in clarifying or resolving any issues which may arise in connection with reporting to ensure accurate and timely reporting (iv) The PPM audit reports shall be submitted to SEBI by AIFs online on the SEBI Intermediary Portal (SI Portal) (v) The reporting requirement shall be applicable for PPM audit reports to be filed for the Financial Year ending March 31, 2024 onwards. To keep pace with the fast-changing landscape of AIF industry and for policy and supervision purposes, the aforesaid reporting format shall be reviewed periodically by pilot SFA in consultation with SEBI. In case of any revisions in the reporting format, revised format shall be made available on websites of the Associations which are part of SFA. For further information, please refer the attachment.

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