CIRCULAR, CIR/IMD/DF/12/2013, dated August 07, 2013
To,
All
Alternative Investment Funds
1. SEBI (Alternative Investment
Funds) Regulations, 2012 (“AIF Regulations”) were notified on May 21, 2012.
Regulation
7(2) of AIF Regulations specifies as under:
"An
Alternative Investment Fund which has been granted registration under a
particular category cannot change its category subsequent to registration,
except with the approval of the Board."
2. In this regard, it is specified
as under:
2.1 Only AIFs who have not made any
investments under the category in which they were registered earlier shall be
allowed to make application for change in category.
2.2
Any AIF
proposing to change its category shall make an application to SEBI for the same
along with application fees of Rs. 1 lakh. The application shall include the
updated Form A (Refer First Schedule to the AIF Regulations), other
updated supporting documents, if any and rationale for the proposed change.
Registration fees shall not apply for such applications.
2.3
If the AIF has
received commitments/ raised funds prior to application for change in category,
the AIF shall be required to send letters/emails to all its investors providing
them the option to withdraw their commitments/ funds raised without any
penalties/charges. Any fees collected from investors seeking to withdraw
commitments/ funds shall be returned to them. Partial withdrawal may be allowed
subject to compliance with the minimum investment amount required under the AIF
Regulations.
2.4
The AIF shall
not make any investments other than in liquid funds/ banks deposits until approval
for change in category is granted by SEBI.
2.5
On approval of
the request from SEBI, the AIF shall send a copy of the revised placement memorandum
and other relevant information to all its investors.
3. This Circular is issued in
exercise of powers conferred under Section 11(1) of the Securities and Exchange
Board of India Act, 1992 to protect the interests of investors in securities
and to promote the development of, and to regulate the securities market.
4. This Circular is available on
SEBI website at www.sebi.gov.in under
the categories “Legal Framework” and “Alternative Investment Funds”.
0 comments:
Post a Comment