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Sebi eases AIF rules, allows AI-only schemes & wider exemptions for large-value funds

Economic Times  

Capital markets regulator Sebi has rolled out a new framework to make it easier for Alternative Investment Funds (AIFs) to create a special class of schemes meant only for accredited investors by giving more relaxations to Large Value Funds (LVFs). The rules come into force immediately.Under the new rules, AIFs can launch "AI-only" schemes that are open exclusively to accredited investors and have lighter compliance on investor protection norms. Sebi has also allowed existing eligible AIFs or their schemes to migrate to AI-only or LVF schemes, but only after getting consent from all investors and meeting prescribed conditions.LVFs have been exempted from the standard private placement memorandum template and from the requirement of an annual audit of the terms of the placement memorandum. This exemption will apply without needing specific waivers from investors.Sebi has directed that the Compliance Test Report prepared by AIF managers must now also cover adherence to the provisions of this new circular.