Securities and Exchange Board of India (SEBI) has notified Alternative Investment Funds (Fifth Amendment) Regulations, 2024 to further amend SEBI (Alternative Investment Funds) Regulations, 2012. Key highlights of the amendments are mentioned below:
- Insertion of new provision wherein investors of a scheme of an Alternative Investment Fund (AIF) shall have pro-rata rights based on their commitment to the scheme, in terms of investments and distribution proceeds. Any rights of the investors of a scheme of an AIF prior to the above Fifth Amendment Regulation, 2024 which are not pro-rata to their commitment to the scheme and not exempted by the Board, shall be dealt with in the manner specified by the Board.
- Rights of the investors of a scheme of AIF other than that specified above, shall be pari-passu in all aspects. However, differential rights may be offered to select investors of a scheme of an AIF, in the manner as may be specified by the Board, without affecting the interest of other investors of the scheme. The requirement shall not apply to Large Value Fund for Accredited Investors.
Source: E-Gazette
