AIFs get time till Aug 7 for regulatory filings

Alternative Investment Funds (AIFs) have just got a major compliance burden off their back for some more time. Markets regulator SEBI has given another relaxation in compliance norms to AIFs in terms of regulatory filings. This paves the way for AIFs to do regulatory filings of March, April, May and June 2020 before August 07, 2020.

05 Jun 2020
AIFs get time till Aug 7 for regulatory filings

Alternative Investment Funds (AIFs) have just got a major compliance burden off their back for some more time. Markets regulator SEBI has given another relaxation in compliance norms to AIFs in terms of regulatory filings. This paves the way for AIFs to do regulatory filings of March, April, May and June 2020 before August 07, 2020. Emerging as a key investment product for ultra-rich investors, AIFs are well-known for practicing sophisticated investment strategies.

In light of market events due to CoVID-19 pandemic, SEBI, had on March 30 announced a 2-month extension for the due date for regulatory filings for AIFs and VCFs (Venture Capital Funds) for the periods ending March 31, 2020 and April 30, 2020. 

With the national lock down still continuing and financial markets operating under challenging conditions, a need was felt to further extend the timelines for regulatory filings for AIFs and VCFs.

"Accordingly, AIFs and VCFs may submit the regulatory filings for the months ending March, April, May and June 2020, as applicable, on or before August 07, 2020," SEBI said in a fresh circular, dated June 4. The circular comes into force with immediate effect.

Alternative Investment Fund or AIF means any fund established or incorporated in India which is a privately pooled investment vehicle which collects funds from sophisticated investors, whether Indian or foreign, for investing it in accordance with a defined investment policy for the benefit of its investors.

There are 3 types of AIFs recognized by Indian authorities, viz. Category I AIF (including VCFs, Angel Funds, SME Funds, Social Venture Funds, Infrastructure funds), Category II AIF & Category III AIF. 

AIFs are meant for rich investors and the minimum investment requirement by an investor is Rs 1 crore. As per SEBI data, AIFs upto December 2019 had cumulatively raised commitments of Rs. 3.47 lakh crore, funds raised Rs 1.71 lakh crore, out of which Rs 1.42 lakh crore was invested.


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