Guidelines for alternative investment funds revised

Guidelines for alternative investment funds revised

To usher in more transparency, capital market regulator Sebi has revised certain guidelines for alternative investment funds, including stricter disclosure requirements.

Alternative Investment Funds (AIFs) are basically funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.

It has been decided to “provide certain clarifications on the AIF regulations, increase transparency to the investors and provide reporting norms for AIFs,” the Securities and Exchange Board of India (Sebi) said in a circular on Thursday.

Sebi has asked all AIFs to disclose the "disciplinary history" of the fund, its sponsor, manager, directors, partners, promoters and associates. The details should be included in the AIF's placement memorandum.

These funds are required to provide details of pending and past cases (where the person has been found guilty) of litigations, criminal or civil prosecution, disputes and non-payment of statutory dues, among others.

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