Securities Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2023

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:

1. 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.
2. 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.” 
3. 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.” 
4. 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.