The Securities and Exchange Board of India vide its notification dated 8th January 2020 has published The Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2021 to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012.
The Amendment is brought under regulation 20 which specifies the general obligations in which the Manager shall be responsible for investment decisions of the Alternative Investment Fund:
Provided that the Manager may constitute an Investment Committee, to approve investment decisions of the Alternative Investment Fund subject to the following:
(i) The members of Investment Committee shall be equally responsible as the Manager for investment decisions of the Alternative Investment Fund.
(ii) The Manager and members of the Investment Committee shall jointly and severally ensure that the investments of the Alternative Investment Fund are in compliance with the provisions of these regulations, the terms of the placement memorandum, agreement made with the investor, any other fund documents and any other applicable law.
Provided further that the above two clauses shall not apply to an Alternative Investment Fund in which each investor other than the Manager, Sponsor, employees or directors of the Alternative Investment Fund or employees or directors of the Manager, has committed to invest not less than seventy crore rupees (or an equivalent amount in currency other than Indian rupee) and has furnished a waiver to the Alternative Investment Fund in respect of compliance with the said clauses, in the manner specified by the Board. The format in which waiver shall be furnished by the investors is provided in the annexure of the notification dated notified on January 08, 2021.
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