SEBI rolls out Guidelines for Large Value Fund for Accredited Investors under AIF Regulations and requirement of Compliance Officer for Managers of all AIFs

The Securities and Exchange Board of India, through a Circular has introduced Guidelines for Large Value Fund (“LVF”) for Accredited Investors under SEBI (Alternative Investment Funds) Regulations, 2012.

Key Highlights of the Circular:

1. While filing the placement memorandum for LVF schemes with SEBI, a duly signed and stamped undertaking by CEO of the Manager to the Alternative Investment Funds (“AIF”) and Compliance Officer of Manager to the AIF must be submitted in the format prescribed.
2. For LVF Schemes already filed with SEBI similar duly signed and stamped undertaking by CEO of the Manager to the AIF and Compliance Officer of Manager to the AIF must be submitted to SEBI on or before 31st July, 2022.
3. Now the placement memorandum, contribution agreement or other fund documents of LVF must lay down terms and conditions for extension of the tenure beyond two years.
4. Consent must be obtained at least one month before expiration of the fund tenure or extended tenure from its Trustee / Board of Directors/Designated Partners for extending the tenure beyond two years.
5. Ensure that Manager to AIF designates an employee or director as Compliance Officer who must be a person other than CEO of the Manager (or such equivalent role or position depending on the legal structure of Manager). The compliance officer will be responsible for monitoring compliances.

Source: Securities and Exchange Board of India