The Securities and Exchange Board of India (SEBI) notified the Regulatory reporting by Alternative Investment Funds (AIFs).
AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors.
Based on consultation with various stakeholders and recommendation of the Alternative Investment Policy Advisory Committee, the SEBI has decided that all AIFs shall submit reports on their activity as an AIF to SEBI on a quarterly basis within 10 calendar days from the end of each quarter in the revised formats.
Further, Category III AIFs are those trading with a view to making short-term returns and include hedge funds, and shall also submit reports on leverage undertaken, on a quarterly basis in the revised formats.
The SEBI said that any changes in terms of private placement memorandum and in the documents of the fund/ scheme should be intimated to investors and Sebi on a consolidated basis, within one month from the end of a financial year.
“Such intimation shall specifically mention the changes carried-out in the private placement memorandum and the documents of the fund/ scheme, along with the relevant pages of revised sections/ clauses,” the regulator said.
The provisions, which modifies a circular issued in July 2014, would be effective immediately.
As per the 2014 circular, the changes were to be intimated once every six months on a consolidated basis.
“To provide ease of compliance, it has been decided to review and rationalize the existing regulatory reporting requirements,” SEBI said in the circular.
The changes have been decided upon after consultation with various stakeholders and the recommendation of the Alternative Investment Policy Advisory Committee.
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