SEBI on 18 March, 2023 has issued Consultation paper on proposed amendment to SEBI (Alternative Investment Funds) Regulations, 2012 to strengthen governance mechanisms of Alternative Investment Funds to seek comments and inputs from stakeholders and public on the following proposals for amendment to SEBI (Alternative Investment Funds) Regulations, 2012, with the objective of strengthening governance mechanisms of AIFs:
- To specify the guidelines for borrowing by Category I and II AIFs;
- To mandate AIFs to hold their securities/investments in demat form only;
- To extend the mandate for appointment of custodian to all AIFs and to prescribe role of custodians appointed by AIFs;
- To specify maximum extension of tenure by Large Value Fund for Accredited Investors (LVFs); and
- To mandate renewal of registration of AIFs.
