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SEBI Introduces a Standard Reporting Format for Private Placement Memorandum Audit Report for AIFs April 18, 2024
Published in: Investment Funds
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Securities and Exchange Board of India (“SEBI”), vide its circular dated April 18, 2024, has addressed the standardization of Private Placement Memorandums (“PPMs”) audit reports for Alternative Investment Funds (“AIFs”).
Regulation 28 of the SEBI (AIF) Regulations, 2012 and Clause 2.4 of Master Circular for AIFs, mandates AIFs to carry out an annual audit of compliance with the terms of the PPM. Further, Clause 2.4.2 of the Master Circular for AIFs requires AIFs to submit annual PPM audit reports to the trustee or board of directors or designated partners of the AIFs, board of directors or designated partners of the manager, and SEBI, within a period of 6 months from the end of the financial year.
With an aim to ensure uniform compliance standards and to facilitate compliance reporting for AIFs, SEBI has introduced a standard reporting format for PPM audit reports. This format is applicable to various categories of AIFs and has been prepared in consultation with the pilot SFA for AIFs.
The AIF associations are required to assist all the AIFs in understanding the reporting requirements and in clarifying or resolving any issues that may arise in connection with reporting to ensure accurate and timely reporting. Additionally, the AIFs should submit PPM audit reports to SEBI online on the SEBI Intermediary Portal (SI Portal) as per the aforesaid format. The reporting requirement shall be applicable for PPM audit reports that are to be filed for the financial year ending March 31, 2024, onwards.
To read the circular click here
For any clarification, please write to:
Mr. Yatin Narang
Partner
[email protected]
