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SEBI Relaxes Intimation Rules for Changes in the Terms of Private Placement Memorandum of AIFs Through Merchant Bankers April 29, 2024
Published in: Investment Funds
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Securities Exchange Board of India (“SEBI”), vide its circular dated April 29, 2024, based on the feedback received from the market participants has relaxed the requirement of intimating changes in the terms of the Private Placement Memorandum (“PPM”) of AIFs through merchant bankers and SEBI has identified that certain changes in the terms of the PPM may be filed directly with SEBI rather than through a merchant banker, thereby facilitating ease of doing business and rationalising the cost of compliance for AIFs. Para 2.5.3 of the Master Circular for AIFs mandated the intimation with respect to any change in the terms of PPM to be submitted to SEBI through a merchant banker, along with a due diligence certificate from the merchant banker in the format specified by SEBI.
The said circular lists out in Annexure A thereto, the changes in the terms of the PPM that are to be filed directly with SEBI. Further, as per the circular, Large Value Fund for Accredited Investors (“LVFs”) are exempted from the requirement of intimating any changes in the terms of PPM through a merchant banker. LVFs may directly file any changes in the terms of the PPM with SEBI, along with a duly signed and stamped undertaking by the chief executive officer of the manager of AIFs (or the person holding equivalent role or position depending on the legal structure of the manager) and compliance officer of the manager of AIFs (in the format set out in Annexure B to the circular).
To read the circular click here
For any clarification, please write to:
Mr. Yatin Narang
Partner
[email protected]
