SEBI (Alternative Investment Funds) ( Amendment) Regulations, 2021


Quick Summary
The Securities and Exchange Board of India (SEBI) has introduced the Alternative Investment Funds (Amendment) Regulations, 2021. These amendments, effective from their publication in the Official Gazette, modify the existing SEBI (Alternative Investment Funds) Regulations, 2012. A key change relates to Regulation 20, specifically introducing a new proviso that exempts certain Alternative Investment Funds from specific clauses under certain conditions. This exemption applies if each investor, excluding the Manager, Sponsor, or their employees/directors, has committed to invest at least seventy crore rupees and has provided a waiver.

SECURITIES AND EXCHANGE BOARD OF INDIA

NOTIFICATION

Mumbai, the 8th, January, 2021

SECURITIES AND EXCHANGE BOARD OF INDIA (ALTERNATIVE INVESTMENT FUNDS) (AMENDMENT) REGULATIONS, 2021

No. SEBI/LAD-NRO/GN/2021/01. - In exercise of the powers conferred by sub-section (1) of Section 30 read with sub-section (1) of Section 11, clause (ba) and clause (c) of sub-section (2) of section 11 and sub-section (1) and (1B) of Section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 namely:—

1. These regulations may be called the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2021.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012–

I  In regulation 20,

i. in clause (iv) of the proviso to sub-regulation (6), the symbol “.” shall be substituted with the symbol “:”.

ii. after clause (iv) of the proviso to sub-regulation (6), the following proviso shall be inserted, namely, –

“Provided further that clauses (i) and (ii) shall not apply to an Alternative Investment Fund in which each investor other than the Manager, Sponsor, employees or directors of the Alternative Investment Fund or employees or directors of the Manager, has committed to invest not less than seventy crore rupees (or an equivalent amount in currency other than Indian rupee) and has furnished a waiver to the Alternative Investment Fund in respect of compliance with the said clauses, in the manner specified by the Board.”

AJAY TYAGI, Chairman
[ADVT. III/4/Exty./441/2020-21]

Footnote:

1. The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 were published in the Gazette of India on May 21, 2012 vide No. SEBI/LAD-NRO/GN/2012-13/04/11262.

2. The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 were subsequently amended on, –

(1) 16th September, 2013 by the Securities and Exchange Board of India (Alternative Investment Funds)
(Amendment) Regulations, 2013 vide No. LAD-NRO/GN/2013-14/24/6573.

(2) 23rd May, 2014 by the Securities and Exchange Board of India (Payment of Fees) (Amendment) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/03/1089.

(3) 26th September, 2014 by the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/11/1576.

(4) 14th August, 2015 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2015 vide No. SEBI/LAD-NRO/GN/2015-16/011.

(5) 4th January, 2017 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2016 vide No. No. SEBI/LAD/NRO/GN/2016-17/026.

(6) 6th March, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode of Payment) (Amendment) Regulations, 2017 vide No. SEBI/LAD/NRO/GN/2016-17/037.

(7) 1st June, 2018 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2018 vide No. SEBI/LAD/NRO/GN/2018/19.

(8) 10th May, 2019 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2019 vide No. SEBI/LAD/NRO/GN/2019/16.

(9) 17th April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox) (Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10.

(10) 19th October, 2020 by the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2020 vide No. SEBI/LAD/NRO/GN/2020/37.

FAQ :

These are new regulations introduced by SEBI to further amend the existing Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.

They come into force on the date of their publication in the Official Gazette.

A new proviso has been inserted after clause (iv) of the proviso to sub-regulation (6) of Regulation 20.

An Alternative Investment Fund where each investor (other than the Manager, Sponsor, or their employees/directors) has committed to invest at least seventy crore rupees and has furnished a waiver to the fund.

The investor must have committed to invest not less than seventy crore rupees or an equivalent amount in a currency other than Indian rupee.

 

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