The Securities and Exchange Board of India (“SEBI”) has, in a Circular dated 8th January, 2021 issued information regarding the recent amendment to Regulation 20(6) of SEBI (AIF) Regulations, 2012 .
In terms of the amendment, exemption is granted from applicability of *clause (i) and (ii) of the first proviso to Regulation 20(6), subject to certain. One of these conditions require the investor to furnish a waiver to the AIF in respect of compliance with these clauses.
In light of this, through the present Circular, SEBI has issued Annexure I (attached) as the format of the waiver to be furnished by the investors.
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*clause (i) and (ii) of the first proviso to Regulation 20(6) of SEBI (AIF) Regulations, 2012:
Regulation 20- General Obligations:
6) The Manager shall be responsible for investment decisions of the Alternative Investment Fund:
Provided that the Manager may constitute an Investment Committee (by whatever name it may be called), 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.
Source: Securities and Exchange Board of India
