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Sebi directs AIFs to do specific due diligence on investors, funds
The capital markets regulator Sebi has directed Alternative Investment Funds (AIF) and their managers to exercise specific due diligence with respect to investors and investments in a bid to prevent circumvention of various laws and ensure compliance with regulatory frameworks. Under this, AIFs designated as Qualified Institutional Buyers (QIBs) or Qualified Buyers (QBs) must ensure that investors who are not eligible for QIB or QB status on their own do not avail of the respective benefits through the AIF.Additionally AIFs are required to avoid facilitating the ever-greening of stressed loans/assets for RBI-regulated entities, adhering to RBI's norms for income recognition, asset classification, provisioning, and restructuring.If any investor or group of investors contributes 50% or more to the AIF's scheme, detailed due diligence is required.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.