The Securities Exchange Board (SEBI) of India vide Circular dated February 05, 2020 has introduced standard templates for Private Placement Memorandums(PPMs) and a mandatory procedure for performance bench-marking for Alternative Investment Funds ( AIFs ).
In furtherance of the steps taken by SEBI to streamline disclosure standards in the growing AIF space, after consultation of public comments and deliberations of the Alternative Investment Policy Advisory Committee (AIPAC), SEBI has introduced the following circular for Standardization of Private Placement Memorandum and for introduction of an industry benchmark to compare the performance of AIF industry against other investment avenues.
The Circular provides templates for PPMs and in order to ensure compliance with the terms of PPM, it will be mandatory for AIFs to carry out an annual audit of such compliance. The audit shall be carried out by either internal or external auditor/legal professional and findings of the audit and corrective steps shall be communicated to the management of the AIF and SEBI.
Click here to read the Circular.
