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Sebi simplifies AIF investor accreditation requirements
Capital markets regulator the Securities and Exchange Board of India (Sebi) has further simplified the accredited investor framework for Alternative Investment Funds (AIFs), with the objective of removing operational bottlenecks for AIFs while maintaining prudential safeguards.Under the updated norms, AIF investment managers are permitted to finalise and execute contribution agreements with investors even before the latter receive formal accreditation certificates. However, any commitment made by such investors will not be factored into the scheme's corpus until accreditation is obtained, and funds can only be accepted once the certificate is issued.Additionally, Sebi has relaxed documentation requirements for accreditation based on net worth criteria, removing the mandate for a detailed breakup of net worth as an annexure. Sebi has clarified that chartered accountants can optionally specify the exact net worth amount, provided the prescribed threshold is met.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.