Consultation paper on a standardized approach to the valuation of the investment portfolio of AIFs

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.

Proposals:

1. AIFs shall be mandated to carry out valuation of their investment portfolio as per IPEV Guidelines.
2. The valuation norms for Mutual Funds shall also be specified for valuation of investment portfolio of AIFs.

Comments on the consultation paper may be sent by email to Shri. Sachin Kisan Jadhav (sachinj@sebi.gov.in ) and Ms.  Padma Bharathi S (padmab@sebi.gov.in)  by January 23, 2023.