The Securities and Exchange Board of India vide its notification dated 16th March 2022 has published the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2022 to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
The Amendment is brought under regulation 15 which deals with general investment conditions in which clause (d) has been substituted as follows:
Category III Alternative Investment Funds shall invest not more than ten per cent of the investable funds in an Investee Company, directly or through investment in units of other Alternative Investment Funds and the large value funds for accredited investors of Category III Alternative Investment Funds may invest up to twenty per cent of the investable funds in an Investee Company, directly or through investment in units of other Alternative Investment Funds:
Provided that for investment in listed equity of an Investee Company, Category III Alternative Investment Funds may calculate the investment limit of ten per cent of either the investable funds or the net asset value of the scheme and large value funds for accredited investors of Category III Alternative Investment Funds may calculate the investment limit of twenty per cent of either the investable funds or the net asset value of the scheme, subject to the conditions specified by the Board from time to time.
“Category III Alternative Investment Fund “which employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives.
