Home India Securities and Exchange Board of India the Board hereby makes the following regulations to further ...
Date: 2021-11-09 Category: Extra Ordinary State: Union Government Country: India

the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012

Issued by Securities and Exchange Board of India · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This notification announces the Securities and Exchange Board of India (SEBI) Alternative Investment Funds Fifth Amendment Regulations, 2021. It amends the 2012 regulations concerning Alternative Investment Funds. The regulations come into force 30 days after publication in the Official Gazette, except for amendments to clause ii of subregulation II of regulation 3, which are effective from the date of publication. Key Points / Main Content: * **Coinvestment Definition:** * Defines "Coinvestment" as investments by a Manager, Sponsor, or investor of Category I and II Alternative Investment Funds in investee companies where such funds also invest. * Coinvestment by investors of Alternative Investment Fund shall be through a Co investment Portfolio Manager. * **Regulation 15 Amendments:** * Coinvestment terms must not be more favorable than the Alternative Investment Fund's investment terms. * Exit terms for Coinvestment, including timing, must be identical to those of the Alternative Investment Fund; this applies to coinvestments made after the regulation's effective date. * Category III Alternative Investment Funds investment limits: * No more than 10% of net asset value in listed equity of an investee company. * No more than 10% of investable funds in securities other than listed equity of an investee company. * Large value funds for accredited investors of Category III Alternative Investment Funds investment limits: * May invest up to 20% of the net asset value in listed equity of an Investee Company. * May invest up to 20% of the investable funds in securities other than listed equity of an Investee Company. * **Regulation 20 Amendment:** * Managers cannot provide advisory services to investors, other than the clients of the Co investment Portfolio Manager, for investment in investee companies where the managed Alternative Investment Fund invests. Impact Analysis: * **Alternative Investment Fund Managers:** * Impact: Must ensure coinvestment terms are not more favorable and adhere to advisory service restrictions. * Action Required: Review and update coinvestment policies and procedures to comply with the new regulations. * **Category III Alternative Investment Funds:** * Impact: Subject to revised investment limits in listed equity and other securities of investee companies. * Action Required: Adjust investment strategies to align with the new percentage limits. * **Investors in Category I and II Alternative Investment Funds:** * Impact: Coinvestment by investors of Alternative Investment Fund shall be through a Co investment Portfolio Manager. * Action Required: Ensure that Coinvestment is done through a Co investment Portfolio Manager * **Coinvestors:** * Impact: Coinvestment terms must not be more favorable than the Alternative Investment Fund's investment terms, and Exit terms for Coinvestment, including timing, must be identical to those of the Alternative Investment Fund * Action Required: Ensure compliance to amended Regulations

Key Entities Referenced

Securities and Exchange Board of India (SEBI): A regulatory body for securities and commodity market in India. Securities and Exchange Board of India Act, 1992: The act of the Parliament of India that established the Securities and Exchange Board of India (SEBI). Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012: Regulations governing Alternative Investment Funds (AIFs) in India, as established by SEBI. Securities and Exchange Board of India Alternative Investment Funds Fifth Amendment Regulations, 2021: The fifth amendment to the Securities and Exchange Board of India Alternative Investment Funds Regulations, 2012. Mumbai, Maharashtra: The city where the notification was issued, located in the state of Maharashtra, India. Alternative Investment Funds (AIFs): Privately pooled investment funds. Coinvestment Portfolio Manager: A portfolio manager specified under the Securities and Exchange Board of India Portfolio Managers Regulations, 2020, facilitating coinvestment by investors of Alternative Investment Funds. Securities and Exchange Board of India Portfolio Managers Regulations, 2020: Regulations pertaining to Portfolio Managers as specified by SEBI.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-एम.एच.-अ.-10112021-230993 xxxGIDHxxx CG-MH-E-10112021-230993 xxxGIDExxx असाधारण EXTRAORDINARY भाग III—खण् ड 4 PART III—Section 4 प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 546] िई ददपली, मगं लिार, ििम्ब र 9, 2021/कार्तकड 18, 1943 No. 546] NEW DELHI, TUESDAY, NOVEMBER 9, 2021/KARTIKA 18, 1943 भारतीय प्रजतभजू त और जिजिमय बोडड अजधसचू िा मुम्बई, 9 ििम्बर, 2021 भारतीय प्रजतभजू त और जिजिमय बोडड [आिुकजपिक जिजिधाि (जिििे ) जिजधया]ाँ (िाचाँ िा ाँसिं ोधि) जिजियम, 2021 स.ं सिे ी/एलएडी-एिआरओ/िीएि/2021/57.— बोडड, भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम, 1992 (1992 का 15) की धारा 11 की उि-धारा (2) के खंड (ग) के साथ िठित धारा 30 द्वारा प्रदाि की गई िजियों का प्रयोग करते हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ जिजियम, 2012 का और संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत ्- 1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधयााँ] (िााँचिााँ संिोधि) जिजियम, 2021 कहा िा सकेगा । 2. ि ेरािित्र में उिके प्रकािि की तारीख से तीसिें ददि लागू होंगे: िरंतु यह दक जिजियम 15 के उि-जिजियम (1) के खंड (घ) में दकए गए संिोधि रािित्र में उिके प्रकािि की तारीख को लागू होंगे । 3. भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ जिजियम, 2012 में,- 6449 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] I. जिजियम 2 के उि-जिजियम (1) के खंड (च) के िश्चात्, जिम्नजलजखत खंड अंतःस्ट्थाजित दकया िाएगा, अथाडत,- “(चक) “सह-जििेि” (को-इििेस्ट्टमेंट) का अथड ह ै - प्रिग-डI और प्रिगड-II की आिुकजपिक जििेि जिजध (जिजधयों) [ऑपटरिेठटि इन्िेस्ट्टमेंट फंड] के प्रबंधक या प्रायोिक (स्ट्िॉन्सर) या जििेिक द्वारा उि इन्िेस्ट्टी कंिजियों (ऐसी कंिजिया ाँ जििमें जििेि दकया िाए) में दकया गया जििेि, जििमें ऐसी प्रिग-डI या प्रिग-डII की आिुकजपिक जििेि जिजध (जिजधया)ाँ जििेि करती हो (हों): िरंतु यह दक आिुकजपिक जििेि जिजध के जििेिकों द्वारा सह-जििेि (को-इन्िेस्ट्टमेंट) ‘सह-जििेि (को-इन्िेस्ट्टमेंट) िोटडफोजलयो प्रबंधक’ के िठरए दकया िाएगा, िैसा भारतीय प्रजतभूजत और जिजिमय बोडड (िोटडफोजलयो प्रबंधक) जिजियम, 2020 में उपलेख दकया गया ह ै।” II. जिजियम 15 के उि-जिजियम (1) में, i. खंड (ख) जिम्नजलजखत से प्रजतस्ट्थाजित हो िाएगा, अथाडत्,- “(ख) प्रबंधक या प्रायोिक (स्ट्िॉन्सर) या सह-जििेिक (को-इन्िेस्ट्टर) द्वारा दकसी इन्िेस्ट्टी कंििी में दकए िािे िाल े सह-जििेि की ितें आदद आिुकजपिक जििेि जिजध के जििेि की ितों आदद की तुलिा में ज्यादा जहतकर िहीं होंगी: िरंतु यह दक दकसी इन्िेस्ट्टी कंििी में दकए िािे िाले सह-जििेि (को-इन्िेस्ट्टमेंट) से जिकास (एजज़िट) की ितें आदद (जििमें जिकास का समय आदद भी िाजमल ह)ै िैसी ही होंगी, िैसी आिुकजपिक जििेि जिजध के जिकास के मामले म ें लागू हैं: िरंतु यह और दक उिरोि िरंतुक इस जिजियम के लागू होिे की तारीख से सह-जििेि (को-इन्िेस्ट्टमेंट) के मामले में ही लागू होगा ।” ii. खंड (घ) जिम्नजलजखत से प्रजतस्ट्थाजित हो िाएगा, अथाडत्,- “(घ) प्रिगड-III की आिुकजपिक जििेि जिजधयााँ दकसी एक इन्िेस्ट्टी कंििी की सूचीबद्ध (जलजस्ट्टड) इदिटी में िुद्ध आजस्ट्त मूपय (िेट असेट िैपयू) के दस प्रजतित से अजधक का जििेि िहीं करेंगी और दकसी एक इन्िेस्ट्टी कंििी की सूचीबद्ध (जलजस्ट्टड) इदिटी से जभन्न प्रजतभूजतयों (जसक्यूठरटी़ि) में, प्रत्यक्ष रूि से या अन्य आिुकजपिक जििेि जिजधयों की यूजिटों में जििेि करके, जििेियोजय जिजधयों (फंड) के दस प्रजतित से अजधक का जििेि िहीं करेंगी: िरंतु यह दक अक्रेजडठटड जििेिकों के जलए अत्यजधक जििेि करिे हतेु बिाए गए फंड (प्रिगड-III की आिकु जपिक जििेि जिजध के) दकसी एक इन्िेस्ट्टी कंििी की सूचीबद्ध (जलजस्ट्टड) इदिटी में िुद्ध आजस्ट्त मूपय (िेट असेट िैपयू) के बीस प्रजतित तक का जििेि कर सकेंगे और दकसी एक इन्िेस्ट्टी कंििी की सूचीबद्ध (जलजस्ट्टड) इदिटी से जभन्न प्रजतभूजतयों (जसक्यूठरटी़ि) में, प्रत्यक्ष रूि से या अन्य आिुकजपिक जििेि जिजधयों की यूजिटों में जििेि करके, जिििे योजय जिजधयों (फंड) के बीस प्रजतित तक का जििेि कर सकेंगे;” III. जिजियम 20 के उि-जिजियम (14) के िश्चात्, जिम्नजलजखत अंतःस्ट्थाजित दकया िाएगा, अथाडत-् “(15) प्रबंधक इन्िेस्ट्टी कंिजियों की प्रजतभूजतयों (जसक्यूठरटी़ि) में जििेि करिे के संबंध में, सह-जििेि (को- इन्िेस्ट्टमेंट) िोटडफोजलयो प्रबंधक [िैसा भारतीय प्रजतभूजत और जिजिमय बोडड (िोटडफोजलयो प्रबंधक) जिजियम, 2020 में उपलेख दकया गया है] के ग्राहकों से जभन्न दकसी जििेिक को सलाहकार (एडिाइ़िरी) सेिाएाँ प्रदाि िहीं करेगा, िहााँ िह आिुकजपिक जििेि जिजध जििेि करती हो जिसका प्रबंधि उसके द्वारा दकया िाता हो ।” अिय त्यागी ,अध्यक्ष [जिज्ञािि-III/4/असा./411/2021-22][भाग III—खण् ड 4] भारत का रािित्र : असाधारण 3 िाद ठटप्िण : 1. भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ जिजियम, 2012, सं. एल.ए.डी.- एि.आर.ओ./िी.एि./2012-13/04/11262, 21 मई 2012 को भारत के रािित्र में प्रकाजित हुए थ े। 2. भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ जिजियम, 2012 तत्िश्चात्, - (1) 16 जसतम्बर, 2013 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2013, सं. एलएडी-एिआरओ/िीएि/2013-14/24/6573, द्वारा (2) 23 मई, 2014 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का संदाय) (संिोधि) जिजियम, 2014, सं. एल.ए.डी.- एि.आर.ओ./िी.एि./2014-15/03/1089, द्वारा (3) 26 जसतम्बर, 2014 को भारतीय प्रजतभूजत और जिजिमय बोडड (ठरयल इस्ट्टेट जििेि न्यास) जिजियम, 2014, सं. एल.ए.डी./एि.आर.ओ./िी.एि./2014-15/11/1576, द्वारा (4) 14 अगस्ट्त, 2015 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2015, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2015-16/011, द्वारा (5) 4 िििरी, 2017 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2016, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/026, द्वारा (6) 6 माचड, 2017 को भारतीय प्रजतभूजत और जिजिमय बोडड (फीस का भुगताि और भुगताि का माध्यम) (संिोधि) जिजियम, 2017, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2016-17/037, द्वारा (7) 1 िूि, 2018 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2018, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2018/19, द्वारा (8) 10 मई, 2019 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2019, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2019/16, द्वारा (9) 17 अप्रैल, 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेजयूलेटरी सैंडबॉक्स) (संिोधि) जिजियम, 2020, सं. सेबी/एल.ए.डी.-एिआरओ/िीएि/2020/10, द्वारा (10) 19 अिूबर, 2020 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2020, सं. सेबी/एल.ए.डी./एि.आर.ओ./िी.एि./2020/37, द्वारा (11) 8 िििरी, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (संिोधि) जिजियम, 2021, सं. सेबी/एल.ए.डी./एि.आर.ओ./िी.एि./2021/01, द्वारा (12) 5 मई, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधयााँ] (दसू रा संिोधि) जिजियम, 2021, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/21, द्वारा (13) 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड (रेजयूलेटरी सैंडबॉक्स) (संिोधि) जिजियम, 2021, सं. सेबी/एलएडी-एिआरओ/िीएि/2021/30, द्वारा (14) 3 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधया]ाँ (तीसरा संिोधि) जिजियम, 2021, सं. सेबी/एलएडी-एिआरओ/िीएि/2021/33, द्वारा (15) 13 अगस्ट्त, 2021 को भारतीय प्रजतभूजत और जिजिमय बोडड [आिुकजपिक जिजिधाि (जििेि) जिजधयााँ] (चौथा संिोधि) जिजियम, 2021, सं. सेबी/एल.ए.डी.-एि.आर.ओ./िी.एि./2021/41, द्वारा संिोजधत हुए थे ।4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4] SECURITIES AND EXCHANGE BOARD OF INDIA NOTIFICATION Mumbai, the 9th November, 2021 SECURITIES AND EXCHANGE BOARD OF INDIA (ALTERNATIVE INVESTMENT FUNDS) (FIFTH AMENDMENT) REGULATIONS, 2021 SEBI/LAD-NRO/GN/2021/57.— In exercise of the powers conferred by section 30 read with clause (c) of sub-section (2) of section 11 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) (Fifth Amendment) Regulations, 2021. 2. They shall come into force on the thirtieth day from the date of their publication in the Official Gazette: Provided that the amendments to clause (ii) of sub-regulation II of regulation 3 of these Regulations 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. After clause (f) of sub-regulation (1) of regulation 2, the following clause shall be inserted, namely,- “(fa)“Co-investment” means investment made by a Manager or Sponsor or investor of Category I and II Alternative Investment Fund(s) in investee companies where such Category I or Category II Alternative Investment Fund(s) make investment: Provided that Co-investment by investors of Alternative Investment Fund shall be through a Co- investment Portfolio Manager as specified under the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020;” II. in sub-regulation (1) of regulation 15, i. clause (b) shall be substituted with the following, namely,- “(b) The terms of Co-investment in an investee company by a Manager or Sponsor or co- investor, shall not be more favourable than the terms of investment of the Alternative Investment Fund: Provided that the terms of exit from the Co-investment in an investee company including the timing of exit shall be identical to the terms applicable to that of exit of the Alternative Investment Fund: Provided further that the above proviso shall be applicable only for co-investment made from the date of coming into force of this regulation; ii. clause (d) shall be substituted with the following, namely,- “(d) Category III Alternative Investment Funds shall invest not more than ten per cent of the net asset value in listed equity of an Investee Company and shall invest not more than ten per cent of the investable funds in securities other than listed equity of an Investee Company, directly or through investment in units of other Alternative Investment Funds: Provided that large value funds for accredited investors of Category III Alternative Investment Funds may invest up to twenty per cent of the net asset value in listed equity of an Investee Company and may invest up to twenty per cent of the investable funds in securities other than listed equity of an Investee Company, directly or through investment in units of other Alternative Investment Funds;” III. After sub-regulation (14) of regulation 20, the following shall be inserted, namely- “(15) The manager shall not provide advisory services to any investor other than the clients of Co- investment Portfolio Manager as specified in the Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, for investment in securities of investee companies where the Alternative Investment Fund managed by it makes investment.” AJAY TYAGI ,Chairman [ADVT.-III/4/Exty./411/2021-22][भाग III—खण् ड 4] भारत का रािित्र : असाधारण 5 Footnote: 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 Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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