SEBI Simplifies Investor Rules for Alternative Funds
Overview
India's securities regulator, SEBI, has eased accreditation requirements for investors in Alternative Investment Funds (AIFs). The move simplifies documentation, making net worth certificate annexures optional, and allows investment managers to proceed with onboarding pending formal accreditation in certain cases. Funds will only be disbursed after full accreditation is obtained.
SEBI Streamlines AIF Investor Accreditation
Securities and Exchange Board of India (SEBI) announced on Friday a significant simplification of accreditation requirements for investors in Alternative Investment Funds (AIFs). These updated norms are effective immediately.
Simplified Documentation Process
The regulator has removed the mandatory requirement for a detailed net worth break-up annexure with the net worth certificate. Chartered accountants will now have the option to specify whether the investor meets the required threshold, reducing administrative burden.
Flexibility in Onboarding
Investment managers can now finalize contribution agreements and begin operational procedures based on their assessment, even if the accreditation agency's receipt is pending. However, any investor commitment will not count towards the scheme's corpus until a formal accreditation certificate is secured, ensuring compliance with prudential norms.
