The Securities and Exchange Board of India (SEBI) on January 09, 2023, notified the Securities Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2023. The amendment provides the following:
- Category I Alternative Investment Funds may engage in hedging, including credit default swaps in terms of the conditions as may be specified by the Board from time to time.
- Category II Alternative Investment Funds may buy or sell credit default swaps in terms of the conditions as may be specified by the Board from time to time.”
- Category III Alternative Investment Funds may buy or sell credit default swaps in terms of the conditions as may be specified by the Board from time to time.”
- The Sponsor or Manager of the Category I and Category II Alternative Investment Fund transacting in credit default swaps shall appoint a custodian registered with the Board and comply with such terms and conditions as may be specified by the Board.
This will come into force on January 09, 2023.
