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SEBI Reduces Overseas Investment Timeline for Alternative Investment and Venture Capital Funds August 4, 2023
Published in: Investment Funds
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As per the extant guidelines on overseas investments, alternative investment funds (“AIFs”) and venture capital funds (“VCFs”) had a time limit of 6 months from the date of obtaining prior approval from Securities and Exchange Board of India (“SEBI”) for making allocated investments in offshore venture capital undertakings. In case the applicant AIFs/ VCFs do not utilize the limits allocated to them within the said 6 months, SEBI may allocate such unutilized limit to other applicant AIFs/ VCFs.
SEBI, vide its circular dated August 4, 2023, has now slashed the validity period of approval granted to AIFs and VCFs for making overseas investments to 4 months from the date of obtaining prior approval from SEBI.
This move will enable AIFs and VCFs to utilise allocated limits efficiently and, in the event that such allocated limits are unutilised, the same shall be available to other AIFs and VCFs, in a shorter time span.
The new framework set out in the circular shall apply to the overseas investment approvals granted by SEBI subsequent to the issuance of the said circular.
To read the circular click here
For any clarification, please write to:
Mr. Yatin Narang
Partner
[email protected]
