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SEBI issues norms for large volume AIFs

Economic Times  

Capital markets regulator Sebi has come out with new guidelines for "Large Value Fund" (LVF) for accredited investors, pertaining to filing of such schemes and extension of their tenures beyond two years. LVF refers to an alternative investment fund (AIF) or scheme of an AIF in which each investor (other than the manager, sponsor, employees or directors of the AIF or the manager) is an accredited investor and invests at least INR 70 crore. While filing the placement memorandum for LVF schemes with Sebi, a duly signed and stamped undertaking by the CEO of the manager to the AIF needs to be submitted in a prescribed format. With regard to extension of tenure beyond two years, Sebi said that the placement memorandum, contribution agreement or other fund documents of LVF need to lay down terms and conditions for extension of the tenure beyond two years in order to enable the investors to take an informed decision.