The Securities Exchange Board of India (SEBI) on January 06, 2023, issued a consultation paper on a standardized approach to the valuation of the investment portfolio of AIFs. AIF Regulations focus on disclosures to investors and do not prescribe any guidelines on the principles/methodology/standards to be adopted. As such, managers of AIFs have flexibility to adopt any valuation principle/methodology/standard by disclosing the same to investors in Private Placement Memorandums (PPMs)of schemes of AIFs managed by them.
- AIFs shall be mandated to carry out valuation of their investment portfolio as per IPEV Guidelines.
- The valuation norms for Mutual Funds shall also be specified for valuation of investment portfolio of AIFs.