AIFs can invest in securities of investee cos, units of other AIFs: Sebi

On June 25, market regulation Sebi announced the framework of an Alternative Investment Fund (AIF), which simultaneously invests in different AIF units and directly invests in the stocks of investment companies.
In this framework, existing AIFs are likely to simultaneously invest in the stocks of the companies they invest in and other AIF units, Sebi said in the circular.
This is the proper disclosure subject of a Private Memorandum of Understanding (PPM), added with the consent of at least two-thirds of the unit holders by investment.
AIF Proposing Investment in Other AIF Units Investing in Other AIF Units Information on the process to be followed by managers to ensure compliance with the proposed allocation and investment terms must be provided to the PPM.
must also disclose detailed information about whether investment in other AIF units managed or sponsored by the same manager or sponsor is proposed. They also disclose such unit allocations, fees and costs, etc.
Of the total costs and costs incurred by AIF investors, some of the fees and costs of investing in other AIF units will also be published in the Thermo Memorandum of Understanding.
“Category III AIFs investing in other AIF units can be leveraged not more than twice the portfolio value (NAV), except for the value of investing in other AIF units,” says Sebi. I did.
Sebi said AIF’s key management and management must comply with the Code of Conduct as stated in the Code.
Core management personnel, the manager’s key investment team members, include employees involved in decision making on behalf of the AIF. directed by.
The AIF also reveals to PPM the names of all AIF’s key administrative staff and managers. Investors and Sebi will be notified of major management changes.
Regulators say that AIF or investor consent of the plan may not be required for changes in external members (sponsors with official qualifications, sponsor groups on behalf of managers or investors). Told. manager.
“Category III AIFs investing in other AIF units can be leveraged not more than twice the portfolio value (NAV), except for the value of investing in other AIF units,” says Sebi. I did.
AIF is a fund established or integrated in India to raise capital from India and foreign investors to invest based on pre-determined policies.

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