Date: 2022-01-24Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by sub section 1 of Section 30 read with sub section 1 of Section 11, clause ba and clause c of sub section 2 of Section 11 and sub section 1 and 1B of Section 12 of the Securities and Exchange Board of India Act, 1992 15 of 1992
## Report on the Securities and Exchange Board of India (SEBI) Alternative Investment Funds (AIF) Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the Securities and Exchange Board of India (SEBI) Alternative Investment Funds (AIF) Amendment Regulations, 2022, as published in the Gazette of India on January 24, 2022. This amendment primarily introduces a new category of AIF: "Special Situation Funds" (SSF), designed to invest in stressed assets, including acting as resolution applicants under the Insolvency and Bankruptcy Code (IBC), 2016. The key finding is the establishment of a regulatory framework to facilitate investment in and resolution of stressed assets through specialized AIFs, potentially improving the efficiency of the IBC process and providing new avenues for stressed asset resolution.
**2. Introduction:**
This report provides an overview and analysis of the SEBI AIF Amendment Regulations, 2022, based solely on the provided policy text. The purpose is to inform stakeholders within the Alternative Investment Fund industry, particularly those involved in or considering investments in stressed assets, about the changes introduced by this amendment.
**3. Policy Overview:**
* **Original Policy Being Amended:** Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012.
* **Core Objective(s) (as inferred from the text):** To facilitate investment in and resolution of stressed assets, including allowing AIFs to act as resolution applicants under the IBC. To create a new category of AIF specifically focused on investing in special situations, including stressed loans and securities of companies undergoing insolvency resolution.
**4. Background and Rationale:**
The amendment likely aims to address the ongoing need for efficient resolution of stressed assets within the Indian economy. By introducing "Special Situation Funds," SEBI aims to provide a dedicated investment vehicle for these assets, potentially attracting more capital and expertise into the resolution process. This also offers a structured pathway for AIFs to participate in the IBC process as resolution applicants, potentially accelerating resolution timelines and maximizing recovery rates.
**5. Key Provisions / Changes:**
The primary changes introduced by the amendment are:
* **Introduction of "Special Situation Funds" (SSF):** A new Category I AIF classification is created: "Special Situation Fund." (Changes Form A of the First Schedule).
* **Definition of "Special Situation Asset":** The amendment defines "special situation asset" to include:
* Stressed loans available for acquisition under RBI guidelines or as part of an IBC resolution plan.
* Security receipts issued by Asset Reconstruction Companies (ARCs).
* Securities of investee companies whose loans are stressed, subject to IBC, or have disclosed defaults. Specific criteria are outlined for the types of companies and defaults, including downgrade to "D" rating.
* Any other asset specified by the Board.
* **SSF Investment Restrictions:**
* SSFs can only invest in special situation assets and may act as resolution applicants under the IBC.
* SSFs cannot invest in:
* Their associates.
* Units of other AIFs (except other SSFs).
* Units of SSFs managed/sponsored by the same manager/sponsor/associates.
* **Investment Requirements and Restrictions:** SSFs must have a minimum corpus size, and each investor must contribute a minimum investment amount, both "as may be specified by the Board" (implying further guidelines will be issued). SSFs can only accept investments from other Special Situation Funds.
* **Exemption for Large Value Funds:** Requirements under subregulation 2 and 3 of regulation 12 do not apply to large value funds for accredited investors.
* **Applicability:** Defines provisions that apply to Special Situation Funds and schemes launched by such funds. Specifically regulation 10 clauses b and c, regulation 15 subregulation 1 clauses a, c and e and regulation 16 subregulation 1 clause a do not apply.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders include:
* Alternative Investment Funds (AIFs), particularly Category I AIFs.
* Investors interested in investing in stressed assets.
* Asset Reconstruction Companies (ARCs).
* Companies with stressed loans or undergoing insolvency resolution.
* Resolution Professionals and other stakeholders involved in the IBC process.
* The Securities and Exchange Board of India (SEBI) itself, as the regulator.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** SEBI is the primary regulatory body responsible for implementing and overseeing these regulations. The Reserve Bank of India (RBI) is also relevant, given the reference to RBI guidelines on stressed loan transfers.
* **Timelines/Procedures:** The amendment comes into force on the date of its publication in the Official Gazette (January 24, 2022). Further specifications regarding corpus size, minimum investment amounts, and lock-in periods will likely be issued by SEBI in separate circulars or guidelines. The Chapter II of these regulations relating to registration apply to Special Situation Funds.
* **Specific Implementation:** The definition of "special situation asset" relies on compliance with Clause 58 of Master Direction Reserve Bank of India Transfer of Loan Exposures Directions, 2021 which will influence how special situation funds can act.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these changes are likely to include:
* **Increased investment in stressed assets:** The creation of SSFs is expected to attract dedicated capital for stressed asset resolution.
* **Improved efficiency of the IBC process:** Allowing AIFs to act as resolution applicants may speed up the resolution of stressed assets.
* **Enhanced price discovery for stressed assets:** Increased competition among investors may lead to more accurate valuation of stressed assets.
* **Greater recovery rates for creditors:** More efficient resolution may result in higher recovery rates for creditors.
* **Financial stability:** By addressing the stressed assets problem, the amendment could contribute to greater financial stability.
**9. Conclusion:**
The SEBI AIF Amendment Regulations, 2022, represent a significant step towards creating a more robust ecosystem for stressed asset resolution in India. The introduction of "Special Situation Funds" provides a dedicated investment vehicle for these assets, with the potential to attract capital, expertise, and improved resolution outcomes. While the specific details of implementation will depend on future guidelines issued by SEBI, this amendment signals a proactive approach to addressing the challenges posed by stressed assets and fostering greater financial stability.
Key Entities Referenced
Securities and Exchange Board of India: Regulatory body responsible for securities market regulation in India. This notification is issued by them.
Securities and Exchange Board of India Alternative Investment Funds Amendment Regulations, 2022: The title of the amendment regulations being published.
Securities and Exchange Board of India Act, 1992: The Act which empowers SEBI to make regulations. Specifically, Sections 11, 12, and 30 are mentioned.
Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012: The principal regulations being amended.
Official Gazette: The official publication in which the regulations will be published.
infrastructure funds: A category of Alternative Investment Funds.
special situation funds: A new category of Alternative Investment Funds being introduced by this amendment.
large value fund for accredited investors: A type of fund to which certain subregulations do not apply.
Insolvency and Bankruptcy Code, 2016: A law related to insolvency resolution, relevant because special situation funds can act as resolution applicants.
Master Direction Reserve Bank of India Transfer of Loan Exposures Directions, 2021: Directions issued by the Reserve Bank of India related to stressed loan acquisition, relevant for defining special situation assets.
Asset Reconstruction Company: An entity involved with security receipts related to stressed assets.
Reserve Bank of India: The central bank of India. Relevant for its regulations regarding loan exposures and asset reconstruction companies.
Government of India: The government of India. Mentioned in the context of policies related to special situation assets.
Systemically Important NonDeposit taking NonBanking Financial Companies: A type of financial institution.
Deposit taking NonBanking Financial Companies: A type of financial institution.
Securities and Exchange Board of India Issue of Capital and Disclosure Requirements Regulations, 2018: SEBI regulations related to disclosure requirements. Relevant in the context of payment defaults.
Category 1 Alternative Investment Fund: A category of Alternative Investment Funds.
Venture Capital Fund: A type of fund under Category 1 Alternative Investment Fund.
Social Venture Fund: A type of fund under Category 1 Alternative Investment Fund.
SME Fund: A type of fund under Category 1 Alternative Investment Fund.
Mumbai, Maharashtra: The location where the Securities and Exchange Board of India notification was issued.
New Delhi, Delhi: Location of publication by the Controller of Publications.
रजजस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
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सी.जी.-एम.एच.-अ.-24012022-232844
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CG-MH-E-24012022-232844
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 45] नई ददपली, सोमिार, जनिरी 24, 2022/माघ 4, 1943
No. 45] NEW DELHI, MONAY, JANUARY 24, 2022/MAGHA 4, 1943
भारतीय प्रजतभजू त और जिजनमय बोडड
अजधसचू ना
मुम्बई, 24 जनिरी, 2022
भारतीय प्रजतभजू त और जिजनमय बोडड
[आनकु जपिक जिजनधान (जनििे ) जनजधया]ाँ (सिं ोधन) जिजनयम, 2022
स.ं सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2022/68.—बोडड, भारतीय प्रजतभूजत और जिजनमय बोड ड अजधजनयम,
1992 (1992 का 15) की धारा 11 की उि-धारा (1), धारा 11 की उि-धारा (2) के खंड (खक) एि ं खंड (ग) तथा धारा
12 की उि-धारा (1) एि ं उि-धारा (1ख) के साथ िठठत धारा 30 की उि-धारा (1) द्वारा प्रदान की गई िजियों का प्रयोग
करते हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधयााँ] जिजनयम, 2012 का
और संिोधन करन े के जलए जनम्नजलजखत जिजनयम बनाता ह,ै अथाडत,् -
1. इन जिजनयमों को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ (संिोधन)
जिजनयम, 2022 कहा जा सकेगा ।
2. य े जिजनयम राजित्र म ें इनके प्रकािन की तारीख को लागू होंग े ।
3. भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ जिजनयम, 2012 म,ें-
I. जिजनयम 3 के उि-जिजनयम (4) के खंड (क) म,ें िब्दों “अिसरं चना जनजधयााँ” के बाद, जचह्न तथा िब्द,
“जििेष िठरजस्ट्थजत िाली जनजधया”ाँ जोडे जाएगं े ।
II. जिजनयम 12 म,ें
451 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
i. उि-जिजनयम (3) म,ें जचह्न “।” के स्ट्थान िर, जचह्न “:” आ जाएगा ।
ii. उि-जिजनयम (3) के िश्चात,् जनम्नजलजखत िरंतुक जोडा जाएगा, अथाडत,् -
“िरंत ुयह दक उि-जिजनयम (2) एि ंउि-जिजनयम (3) के तहत दी हुई अिेक्षाए ाँअक्रेजडठटड जनििे कों
के जलए ‘अत्यजधक जनिेि करने हतेु बनाए गए फंड’ (लाजड िपैय ूफंड) के प्रजत लाग ूनहीं होंगी ।”
III. अध्याय III-क के बाद, जनम्नजलजखत अध्याय जोडा जाएगा, अथाडत्,-
“अध्याय III-ख
जििषे िठरजस्ट्थजत िाली जनजधया ाँ
िठरभाषाए ाँ
19झ. इस अध्याय के प्रयोजनाथ,ड जब तक दक संदभड स ेअन्यथा अिेजक्षत न हो, यहााँ िठरभाजषत िब्दों के िही
अथड होंगे जो उनके जलए नीच ेददए गए ह,ैं और उनके जैसे िब्दों तथा ऐसे जजन िब्दों के रूि कुछ बदल गए हों
उनका अथ डतदनुसार लगाया जाएगा,-
(1) “समाधान (रेजोपयूिन) हते ुआिेदन करन ेिाले आिेदक” (समाधान आिेदक) का िही अथ डहोगा, जो
ददिाला और िोधन अक्षमता सजंहता, 2016 (इन्सॉपिेन्सी एडं बैंकरप्सी कोड, 2016) म ेंइसके जलए ददया
हुआ ह;ै
(2) “जििेष िठरजस्ट्थजत िाली आजस्ट्त” म ेंिाजमल ह,ैं -
(क) मास्ट्टर जनदेि – भारतीय ठरजिड बैंक (जलए गए उधार का अंतरण) जनदेि, 2021 [मास्ट्टर डायरेक्िन –
ठरजिड बैंक ऑफ इंजडया (रांसफर ऑफ लोन एक्सिोजसड) डायरेक्िन्स, 2021] (समय-समय िर यथा
संिोजधत) के खडं 58 के अनुसार या ददिाला और िोधन अक्षमता संजहता, 2016 के तहत मंजूर की गई
समाधान योजना (रेजोपयूिन प्लान) के भागस्ट्िरूि या भारतीय ठरजिड बैंक अथिा भारत सरकार द्वारा
इस संबंध म ेंसमय-समय िर जारी की गई दकसी अन्य नीजत के अनुसार अजनड हते ुउिलब्ध दबािग्रस्ट्त
ऋण (स्ट्रेस्ट्ड लोन);
(ख) भारतीय ठरजि डबैंक के यहा ाँरजजस्ट्रीकृत दकसी आजस्ट्त िनुगठडन कंिनी (असेट ठरकंस्ट्रक्िन कंिनी) द्वारा
जारी की गई प्रजतभूजत रसीदें (जसक्यूठरटी ठरसीट्स);
(ग) जजन कंिजनयों म ें जनिेि दकया जा रहा हो, उन कंिजनयों (इन्िेस्ट्टी कंिजनयों) की प्रजतभूजतयााँ
(जसक्यूठरटीज),
(i) जजनके दबािग्रस्ट्त ऋण मास्ट्टर जनदेि – भारतीय ठरजिड बैंक (जलए गए उधार का अंतरण) जनदेि,
2021 [मास्ट्टर डायरेक्िन – ठरजिड बैंक ऑफ इंजडया (रांसफर ऑफ लोन एक्सिोजसड) डायरेक्िन्स,
2021] (समय-समय िर यथा संिोजधत) के खंड 58 के अनसु ार या ददिाला और िोधन अक्षमता
संजहता, 2016 के तहत मंजूर की गई समाधान योजना के भागस्ट्िरूि या भारतीय ठरजिड बकैं अथिा
भारत सरकार द्वारा इस संबंध म ेंसमय-समय िर जारी की गई दकसी अन्य नीजत के अनुसार अजडन
हतेु उिलब्ध हों;
(ii) जजनके उधारों की एिज म,ें भारतीय ठरजिड बैंक के यहााँ रजजस्ट्रीकृत दकसी आजस्ट्त िुनगडठन कंिनी
(असेट ठरकंस्ट्रक्िन कंिनी) द्वारा प्रजतभूजत रसीद ेंजारी की गई हों;
(iii) जजनके उधार ददिाला और िोधन अक्षमता संजहता, 2016 (इन्सॉपिेन्सी एडं बैंकरप्सी कोड, 2016)
के अध्याय-II के तहत दी हुई कंिनी ददिाला समाधान प्रदक्रया (जनगजमत ददिाला संकपि प्रदक्रया /
कारिोरेट इन्सॉपिेन्सी रेजोपयिू न प्रोसेस) के अध्यधीन हों;[भाग III—खण् ड 4] भारत का राजित्र : असाधारण 3
(iv) जजन्होंने भारतीय प्रजतभूजत और जिजनमय बोडड [िूाँजी का जनगडमन (इश्य)ू और प्रकटीकरण अिेक्षाएाँ]
जिजनयम, 2018 के अनुसार बैंकों / जित्तीय संस्ट्थाओं / प्रणालीगत रूि स े(जसस्ट्टजमकली) महत्त्ििूण ड
जमा (जडिॉजजट) न लेन ेिाली गैर-बैंककग जित्तीय कंिजनयों / जमा (जडिॉजजट) लेन ेिाली गरै-बैंककग
जित्तीय कंिजनयों स ेजलए गए ऋणों िर और/या सूचीबद्ध (जलजस्ट्टड) या असूचीगत (अनजलजस्ट्टड)
ऋण प्रजतभूजतयों (डैट जसक्यूठरटीज) िर ब्याज अदा करने / के मूलधन की रकम की चुकौती करने के
संबंध म ेंकी गई समस्ट्त चूकों (जडफॉपट) को प्रकट (जडस्ट्क्लोज) कर ददया हो, और इस प्रकार भुगतान
के संबंध म ेंकी गई चूक कम स ेकम नब्ब ेकलडैंर ददनों की अिजध तक (चूक होन ेकी तारीख के बाद)
जारी रही हो:
िरंतु यह दक उि-खंड (iii) एि ं(iv) के मामले म,ें कंिनी की जित्तीय जलखतों (फाइनेंजियल इन्स्ट्ूमेंट्स)
या क्रेजडट इन्स्ट्ूमेंट्स या उसके उधारों की क्रेजडट रेटटग घटाकर “डी” या उसके बराबर कर दी गई हो;
(घ) कोई अन्य आजस्ट्त (असेट), जो बोडड द्वारा समय-समय िर जनधाडठरत की जाए;
(3) “जििेष िठरजस्ट्थजत िाली जनजध” का अथ डह ै– प्रिग डI की िह आनुकजपिक जनिेि जनजध जो अिन ेजनिेि के
उद्देश्यों के अनुसार जििेष िठरजस्ट्थजत िाली आजस्ट्तयों म ेंजनिेि करती हो तथा ददिाला और िोधन
अक्षमता संजहता, 2016 के तहत समाधान (रेजोपयूिन) हते ुआिेदन करन ेिाल ेआिेदक के तौर िर काय ड
कर सकती हो ।
लाग ूहोना
19ञ. (1) इस अध्याय के प्रािधान जििेष िठरजस्ट्थजत िाली जनजधयों और ऐसी जििेष िठरजस्ट्थजत िाली
जनजधयों द्वारा लाई जान ेिाली स्ट्कीमों के प्रजत लाग ूहोंग े।
(2) इन जिजनयमों के अन्य सभी प्रािधान [जिजनयम 10 के खंड (ख) एि ं(ग), जिजनयम 15 के उि-जिजनयम
(1) के खंड (क), (ग) एि ं(ङ), जिजनयम 16 के उि-जिजनयम (1) के खंड (क) और इन जिजनयमों के तहत
जारी दकए गए ददिाजनदेिों तथा िठरित्रों (सकुडलर) को छोडकर], जब तक दक संदभ डस ेअन्यथा अिेजक्षत न
हो या इस अध्याय के प्रािधानों के प्रजतकूल न हो, जििेष िठरजस्ट्थजत िाली जनजधयों, जििेष िठरजस्ट्थजत
िाली जनजधयों की स्ट्कीमों और उनके प्रायोजकों (स्ट्िॉन्सर) तथा प्रबंधकों (मनैेजर) के प्रजत लाग ूहोंगे ।
जििषे िठरजस्ट्थजत िाली जनजधयों का रजजस्ट्रीकरण
19ट. कोई आिेदक जििेष िठरजस्ट्थजत िाली जनजध के तौर िर रजजस्ट्रीकरण लेन ेहते ुइन जिजनयमों के
अध्याय-II के प्रािधानों के अनसु ार आिेदन कर सकेगा ।
जििेष िठरजस्ट्थजत िाली जनजधयों म ेंजनिेि
19ठ. (1) जििेष िठरजस्ट्थजत िाली जनजध की प्रत्येक स्ट्कीम का कॉिडस उतना होगा, जजतना बोडड द्वारा
जनधाडठरत दकया जाए ।
(2) जििेष िठरजस्ट्थजत िाली जनजध एक जनिेिक स ेउतन ेमपूय का जनिेि स्ट्िीकार करेगी, जजतना बोड ड
द्वारा जनधाडठरत दकया जाए ।
(3) जििेष िठरजस्ट्थजत िाली जनजध दकसी जििेष िठरजस्ट्थजत िाली जनजध को छोडकर दकसी दसू री
आनुकजपिक जनिेि जनजध स ेजनिेि स्ट्िीकार नहीं करेगी ।
जििषे िठरजस्ट्थजत िाली जनजध द्वारा जनििे
19ड. (1) जििेष िठरजस्ट्थजत िाली जनजधया ाँकेिल जििेष िठरजस्ट्थजतयों िाली आजस्ट्तयों म ेंजनिेि करेंगी
तथा ददिाला और िोधन अक्षमता संजहता, 2016 के तहत समाधान (रेजोपयिू न) हतेु आिेदन करने िाल े
आिेदक के तौर िर काय डकर सकेंगी:
िरंत ुयह दक जििेष िठरजस्ट्थजत िाली जनजध,4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
i. अिन ेसहयोजगयों (असोजसएट) म;ें या
ii. जििेष िठरजस्ट्थजत िाली जनजधयों की यूजनटों को छोडकर दकसी दसू री आनुकजपिक जनिेि जनजध की
यूजनटों म;ें या
iii. अिन ेप्रबंधक, प्रायोजक अथिा अिन ेप्रबंधक या प्रायोजक के सहयोजगयों द्वारा प्रबंजधत या
प्रायोजजत जििेष िठरजस्ट्थजत िाली जनजधयों की यूजनटों म,ें
जनिेि नहीं करेगी ।
(2) जििेष िठरजस्ट्थजत िाली जनजध द्वारा मास्ट्टर जनदेि – भारतीय ठरजिड बैंक (जलए गए उधार का अतंरण)
जनदेि, 2021 [मास्ट्टर डायरेक्िन – ठरजिड बैंक ऑफ इंजडया (रांसफर ऑफ लोन एक्सिोजसड)
डायरेक्िन्स, 2021] (समय-समय िर यथा संिोजधत) के खडं 58 के तहत अर्जजत दबािग्रस्ट्त ऋण
म ेंदकया गया कोई भी जनिेि बोडड द्वारा यथा जनधाडठरत लॉक-इन की अिजध के अध्यधीन होगा ।”
IV. िहली अनुसूची के प्ररूि क के खंड 1 के उि-खंड (ङ) के स्ट्थान िर, जनम्नजलजखत उि-खंड आ
जाएगा, अथाडत,्-
“(ङ) िह प्रिगड जजसके तहत आिेदन दकया जाता ह ै–
1. प्रिगड I की आनुकजपिक जनिेि जनजध - जोजखम िूाँजी जनजध (िचें र कैजिटल फंड)
2. प्रिगड I की आनुकजपिक जनिेि जनजध - सामाजजक उद्यम जनजध (सोिल िेंचर फंड)
3. प्रिगड I की आनुकजपिक जनिेि जनजध - एसएमई जनजध
4. प्रिगड I की आनुकजपिक जनिेि जनजध - अिसंरचना जनजध (इन्रास्ट्रक्चर फंड)
5. प्रिगड I की आनुकजपिक जनिेि जनजध - जििेष िठरजस्ट्थजत िाली जनजध
6. प्रिगड I की आनुकजपिक जनिेि जनजध - अन्य
7. प्रिगड II की आनुकजपिक जनिेि जनजध
8. प्रिगड III की आनुकजपिक जनिेि जनजध”
अजय त्यागी, अध्यक्ष
[जिज्ञािन-III/4/असा./601/2021-22]
िाद ठटप्िण :
1. भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ जिजनयम, 2012, स.ं एल.ए.डी.-
एन.आर.ओ./जी.एन./2012-13/04/11262, 21 मई 2012 को भारत के राजित्र म ें प्रकाजित हुए थ े ।
2. भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ जिजनयम, 2012 तत्िश्चात,् -
(1) 16 जसतम्बर, 2013 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(संिोधन) जिजनयम, 2013, स.ं एलएडी-एनआरओ/जीएन/2013-14/24/6573, द्वारा
(2) 23 मई, 2014 को भारतीय प्रजतभूजत और जिजनमय बोड ड (फीस का संदाय) (संिोधन) जिजनयम, 2014, स.ं
एल.ए.डी.-एन.आर.ओ./जी.एन./2014-15/03/1089, द्वारा
(3) 26 जसतम्बर, 2014 को भारतीय प्रजतभूजत और जिजनमय बोडड (ठरयल इस्ट्टेट जनिेि न्यास) जिजनयम,
2014, स.ं एल.ए.डी./एन.आर.ओ./जी.एन./2014-15/11/1576, द्वारा[भाग III—खण् ड 4] भारत का राजित्र : असाधारण 5
(4) 14 अगस्ट्त, 2015 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(संिोधन) जिजनयम, 2015, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2015-16/011, द्वारा
(5) 4 जनिरी, 2017 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(संिोधन) जिजनयम, 2016, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/026, द्वारा
(6) 6 माच,ड 2017 को भारतीय प्रजतभूजत और जिजनमय बोडड (फीस का भुगतान और भुगतान का माध्यम)
(संिोधन) जिजनयम, 2017, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2016-17/037, द्वारा
(7) 1 जून, 2018 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(संिोधन) जिजनयम, 2018, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2018/19, द्वारा
(8) 10 मई, 2019 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधयााँ]
(संिोधन) जिजनयम, 2019, स.ं सबे ी/एल.ए.डी.-एन.आर.ओ./जी.एन./2019/16, द्वारा
(9) 17 अप्रलै , 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यलू ेटरी सैंडबॉक्स) (संिोधन) जिजनयम,
2020, स.ं सेबी/एल.ए.डी.-एनआरओ/जीएन/2020/10, द्वारा
(10) 19 अिूबर, 2020 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(संिोधन) जिजनयम, 2020, स.ं सेबी/एल.ए.डी./एन.आर.ओ./जी.एन./2020/37, द्वारा
(11) 8 जनिरी, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(संिोधन) जिजनयम, 2021, स.ं सेबी/एल.ए.डी./एन.आर.ओ./जी.एन./2021/01, द्वारा
(12) 5 मई, 2021 को भारतीय प्रजतभूजत और जिजनमय बोड ड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ (दसू रा
संिोधन) जिजनयम, 2021, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2021/21, द्वारा
(13) 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड (रेग्यूलेटरी सैंडबॉक्स) (संिोधन) जिजनयम,
2021, स.ं सेबी/एलएडी-एनआरओ/जीएन/2021/30, द्वारा
(14) 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(तीसरा संिोधन) जिजनयम, 2021, स.ं सेबी/एलएडी-एनआरओ/जीएन/2021/33, द्वारा
(15) 13 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(चौथा संिोधन) जिजनयम, 2021, स.ं सेबी/एल.ए.डी.-एन.आर.ओ./जी.एन./2021/41, द्वारा
(16) 9 निम्बर, 2021 को भारतीय प्रजतभूजत और जिजनमय बोडड [आनुकजपिक जिजनधान (जनिेि) जनजधया]ाँ
(िााँचिााँ संिोधन) जिजनयम, 2021, स.ं सेबी/एलएडी-एनआरओ/जीएन/2021/57, द्वारा
संिोजधत हुए थ े ।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 24th January, 2022
SECURITIES AND EXCHANGE BOARD OF INDIA (ALTERNATIVE INVESTMENT FUNDS)
(AMENDMENT) REGULATIONS, 2022
No. SEBI/LAD-NRO/GN/2022/68.—In exercise of the powers conferred by sub-section (1) of Section 30
read with sub-section (1) of Section 11, clause (ba) and clause (c) of sub-section (2) of Section 11 and sub-section (1)
and (1B) of Section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby
makes the following regulations to further amend the Securities and Exchange Board of India (Alternative Investment
Funds) Regulations, 2012, namely, —
1. These Regulations may be called the Securities and Exchange Board of India (Alternative Investment Funds)
(Amendment) Regulations, 2022.6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, –
I. in clause (a) of sub-regulation (4) of regulation 3, after the words “infrastructure funds” and before
the words “and such other”, the words and symbol “, special situation funds” shall be inserted.
II. In regulation 12,
i. in sub-regulation (3), the symbol “.” shall be substituted with the symbol “:”.
ii. after sub-regulation (3), the following proviso shall be inserted, namely,–
“Provided that the requirements under sub-regulation (2) and (3) shall not apply to large
value fund for accredited investors.”
III. After Chapter III-A, the following shall be inserted, namely, –
“CHAPTER III -B
SPECIAL SITUATION FUNDS
Definitions.
19I. For the purposes of this Chapter, unless the context otherwise requires, the terms defined
herein shall bear the meanings assigned to them below and their cognate expressions and variations
shall be construed accordingly,-
(1) “resolution applicant” shall have the same meaning as assigned to it under the Insolvency and
Bankruptcy Code, 2016;
(2) “special situation asset” includes,-
(a) stressed loan available for acquisition in terms of Clause 58 of Master Direction – Reserve
Bank of India (Transfer of Loan Exposures) Directions, 2021 as amended from time to time
or as part of a resolution plan approved under the Insolvency and Bankruptcy Code, 2016
or in terms of any other policy of the Reserve Bank of India or Government of India issued
in this regard from time to time;
(b) security receipts issued by an Asset Reconstruction Company registered with the Reserve
Bank of India;
(c) securities of investee companies,
(i) whose stressed loans are available for acquisition in terms of Clause 58 of the Master
Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 as
amended from time to time or as part of a resolution plan approved under the
Insolvency and Bankruptcy Code, 2016 or in terms of any other policy of the Reserve
Bank of India or Government of India issued in this regard from time to time;
(ii) against whose borrowings, security receipts have been issued by an Asset
Reconstruction Company registered with the Reserve Bank of India;
(iii) whose borrowings are subject to corporate insolvency resolution process under
Chapter II of the Insolvency and Bankruptcy Code, 2016;
(iv) who have disclosed all the defaults relating to the payment of interest/ repayment of
principal amount on loans from banks / financial institutions/ Systemically Important
Non-Deposit taking Non-Banking Financial Companies/ Deposit taking Non-Banking
Financial Companies and /or listed or unlisted debt securities in terms of the
Securities and Exchange Board of India (Issue of Capital and Disclosure
Requirements) Regulations, 2018 and such payment default is continuing for a period
of at least ninety calendar days after the occurrence of such default:
Provided that in case of sub-clauses (iii) and (iv), the credit rating of the financial
instruments or credit instruments or borrowings of the company has been
downgraded to “D” or equivalent;
(d) Any other asset as may be specified by the Board from time to time;[भाग III—खण् ड 4] भारत का राजित्र : असाधारण 7
(3) “special situation fund” means a Category 1 Alternative Investment Fund that invests in special
situation assets in accordance with its investment objectives and may act as a resolution
applicant under the Insolvency and Bankruptcy Code, 2016.
Applicability.
19J. (1) The provisions of this Chapter shall apply to special situation funds and schemes launched
by such special situation funds.
(2) All other provisions of these regulations, except clauses (b) and (c) of regulation 10,
clauses (a), (c) and (e) of sub-regulation (1) of regulation 15, clause (a) of sub-regulation (1) of
regulation 16 and the guidelines and circulars issued under these regulations, unless the context
otherwise requires or is repugnant to the provisions of this Chapter, shall apply to the special
situation funds, the schemes of special situation funds and their sponsors and managers.
Registration of special situation funds.
19K. An applicant may apply for registration as a special situation fund in accordance with the
provisions of Chapter II of these Regulations.
Investment in special situation funds.
19L. (1) Each scheme of a special situation fund shall have a corpus as may be specified by the
Board.
(2) The special situation fund shall accept from an investor, an investment of such value as
may be specified by the Board.
(3) The special situation fund shall not accept investments from any other Alternative
Investment Fund other than a special situation fund.
Investment by special situation funds.
19M. (1) Special situation funds shall invest only in special situation assets and may act as a
resolution applicant under the Insolvency and Bankruptcy Code, 2016:
Provided that the special situation fund shall not invest in,
i. its associates; or
ii. the units of any other Alternative Investment Fund other than the units of a special
situation fund; or
iii. units of special situation funds managed or sponsored by its manager, sponsor or
associates of its manager or sponsor.
(2) Any investment by a special situation fund in the stressed loan acquired under clause 58 of
the Master Direction – Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 as
amended from time to time shall be subject to lock-in period as may be specified by the Board.”
IV. sub-clause (e) of clause 1 of Form A of the First Schedule shall be substituted with the following,
namely, –
“(e) Category under which the application is made –
1. Category I Alternative Investment Fund-Venture Capital Fund
2. Category I Alternative Investment Fund-Social Venture Fund
3. Category I Alternative Investment Fund-SME Fund
4. Category I Alternative Investment Fund-Infrastructure Fund
5. Category I Alternative Investment Fund - Special Situation Fund
6. Category I Alternative Investment Fund-Other
7. Category II Alternative Investment Fund
8. Category III Alternative Investment Fund”
AJAY TYAGI, Chairman
[ADVT.-III/4/Exty./601/2021-22]8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
Footnotes:
1. The Securities and Exchange Board of India (Alternative Investment Funds) Regulations,
2012 were published in the Gazette of India on May 21, 2012 vide No. SEBI/LAD-NRO/GN/2012-
13/04/11262.
2. The Securities and Exchange Board of India (Alternative Investment Funds) Regulations,
2012 were subsequently amended on, –
(1) 16th September, 2013 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Amendment) Regulations, 2013 vide No. LAD-NRO/GN/2013-14/24/6573.
(2) 23rd May, 2014 by the Securities and Exchange Board of India (Payment of Fees)
(Amendment) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/03/1089.
(3) 26th September, 2014 by the Securities and Exchange Board of India (Real Estate Investment
Trusts) Regulations, 2014 vide No. LAD-NRO/GN/2014-15/11/1576.
(4) 14th August, 2015 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Amendment) Regulations, 2015 vide No. SEBI/LAD-NRO/GN/2015-16/011.
(5) 4th January, 2017 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Amendment) Regulations, 2016 vide No. SEBI/LAD/NRO/GN/2016-17/026.
(6) 6th March, 2017 by the Securities and Exchange Board of India (Payment of Fees and Mode
of Payment) (Amendment) Regulations, 2017 vide No. SEBI/LAD/NRO/GN/2016-
17/037.
(7) 1st June, 2018 by the Securities and Exchange Board of India (Alternative Investment Funds)
(Amendment) Regulations, 2018 vide No. SEBI/LAD/NRO/GN/2018/19.
(8) 10th May, 2019 by the Securities and Exchange Board of India (Alternative Investment Funds)
(Amendment) Regulations, 2019 vide No. SEBI/LAD/NRO/GN/2019/16.
(9) 17 April, 2020 by the Securities and Exchange Board of India (Regulatory Sandbox)
(Amendment) Regulations, 2020 vide No. SEBI/LAD-NRO/GN/2020/10.
(10) 19th October, 2020 by the Securities and Exchange Board of India (Alternative
Investment Funds) (Amendment) Regulations, 2020 vide No. SEBI/LAD/NRO/GN/2020/37.
(11) 8th January, 2021 by the Securities and Exchange Board of India (Alternative
Investment Funds) (Amendment) Regulations, 2021 vide No. SEBI/LAD/NRO/GN/2021/01.
(12) 5th May, 2021 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Second Amendment) Regulations, 2021 vide No SEBI/LAD-NRO/GN/2021/21.
(13) 3rd August, 2021 by the (Regulatory Sandbox) (Amendment) Regulations, 2021 vide No.
SEBI/LAD-NRO/GN/2021/30.
(14) 3rd August, 2021 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Third Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/33.
(15) 13th August, 2021 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Fourth Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/41
(16) 9th November, 2021 by the Securities and Exchange Board of India (Alternative Investment
Funds) (Fifth Amendment) Regulations, 2021 vide No. SEBI/LAD-NRO/GN/2021/57.
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