Venture Intelligence (TSJ Media Pvt. Ltd.)
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Sebi proposes easing of norms for winding up of AIFs
The Securities and Exchange Board of India (Sebi) has proposed easing norms governing the winding up of alternative investment fund (AIF) schemes and surrender of registrations, including allowing funds to retain a portion of liquidation proceeds beyond their permissible fund life under specified conditions.Under the current framework, AIF schemes are required to liquidate assets and distribute all proceeds to investors within one year of expiry of scheme tenure, after settling liabilities.The regulator has proposed permitting AIF schemes to retain funds beyond the permissible fund life where monies are held back due to ongoing litigation or tax demands, subject to the fund demonstrating receipt of a formal notice from tax authorities, regulators or law enforcement agencies. In cases where funds are retained for anticipated liabilities, Sebi has proposed that such retention be allowed only with the consent of at least 75 per cent of investors by value.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.