SEBI allows Category III AIFs to calculate concentration norms based on Net Asset Value of Alternative Investment Funds

Asset Value - Alternative Investment Funds - SEBI - Taxscan

The Securities and Exchange Board of India (SEBI) allowed the Category III AIFs to calculate concentration norms based on Net Asset Value of Alternative Investment Funds.

The Board has approved amendment to SEBI (Alternative Investment Funds) Regulations, 2012 allowing Category III AIFs to calculate concentration norms based on Net Asset Value of the fund instead of investable funds for investment in listed equities of investee companies.

The word Alternative Investment Funds refers to any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

AIFs are divided into three categories: Category I comprising angel funds, social impact funds, SME funds and infrastructure funds; Category II comprises private equity, venture capital and debt funds; and Category III funds typically invest in public markets such as hedge funds.

The SEBI Board met in Mumbai today under the Chairmanship of Shri Ajay Tyagi. The Part-Time Members joined the meeting through video conferencing.

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