The Security and Exchange Board of India (SEBI) notified the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2020 to amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, Sub-clause (g) of regulation 4 shall be substituted which pertains to the key investment team of the Manager of Alternative Investment Fund.
Firstly, the team must have adequate experience, with at least one key personnel having not less than five years of experience in advising or managing pools of capital or in fund or asset or wealth or portfolio management or in the business of buying, selling and dealing of securities or other financial assets.
Secondly, the team must have at least one key personnel with professional qualification in finance, accountancy, business management, commerce, economics, capital market or banking from a university or an institution recognized by the Central Government or any State Government or a foreign university, or a CFA charter from the CFA institute or any other qualification as may be specified by the Board.
After sub-regulation (5) of regulation 20, the provision related to the responsibility of the Manager for investment decisions of the Alternative Investment Fund shall be inserted.
The notification empowered the Manager to constitute an Investment Committee (by whatever name it may be called), to approve investment decisions of the Alternative Investment Fund, subject to the various conditions.
Firstly, the members of the Investment Committee shall be equally responsible as the Manager for investment decisions of the Alternative Investment Fund.
Secondly, the Manager and members of the Investment Committee shall jointly and severally ensure that the investments of the Alternative Investment Fund are in compliance with the provisions of these regulations, the terms of the placement memorandum, agreement made with the investor, any other fund documents and any other applicable law.
Thirdly, the External members whose names are not disclosed in the placement memorandum or agreement made with the investor or any other fund documents at the time of on- boarding investors, shall be appointed to the Investment Committee only with the consent of at least seventy five percent of the investors by value of their investment in the Alternative Investment Fund or scheme.
Lastly, any other conditions as specified by the Board from time to time.
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