Funds

In a significant step forward, which offers flexibility as well as additional compliance requirements to the Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs), the Securities and Exchange Board of India (SEBI) vide its Circular No. SEBI/HO/AFD-1/PoD/CIR/P/2022/108 dated 17 August 2022 (SEBI 2022 Circular) has relaxed the guidelines for overseas investments by AIFs and VCFs.

SEBI in its Circular dated 27 June 2022 has mandated the appointment of Compliance Officer for Investment Managers of all Alternative Investment Funds and has also issued guidelines for Large Value Fund for Accredited Investors relating to filings of fund documents and conditions for extension of tenure of scheme beyond 2 (two) years from the original date of end of their tenure.

On 19 April 2022, the International Financial Services Centre Authority (IFSCA) published the International Financial Services Centre Authority (Fund Management) Regulations, 2022 (FM Regulations), overhauling the fund regime in International Financial Services Centre (IFSC).

The Securities and Exchange Board of India (SEBI) in its board meeting on 28 December 2021 (Board Meeting) declared the introduction of the ‘Special Situations Fund’ (SSF), as a new sub-category of Category I Alternative Investment Funds (AIFs) under the SEBI (AIF) Regulations, 2012 (AIF Regulations).

The Securities and Exchange Board of India (SEBI) has been making consistent efforts to update and reconstruct the alternate investment space.

The introduction of the regulatory and tax regime for alternative investment funds (AIF) in International Financial Services Centres (IFSC) undeniably defines a crucial epoch in the journey of the alternative investment asset class in India.