Sebi New Rules: Many big decisions have been taken in the board meeting of SEBI held on 25 November. Let us tell you in detail.
After the board meeting held on November 25, 2023, the regulator said that any investment made by Alternative Investment Funds (AIF) after September 2024 should be in dematerialized form. In addition, all AIFs will now be required to appoint a Custodian.
Earlier it was only for selected AIF. The Securities and Exchange Board of India (Sebi) has said in a statement that this has been done to ease compliance and further strengthen the protection of investors in AIF.
However, there is exemption for some old investments and liquidation schemes (whose tenure has expired). AIF schemes, whose tenure will end within one year from the date of issue of notification, are also exempted from this.
What is AIF? Usually investors invest in equity, shares or other securities. AIF is a collective fund that raises funds from investors and invests in venture capital, private equity, hedge funds, commercial property, managed futures and other financial instruments.
AIFs are also called Alt Funds or Liquidity Alt. This investment would have been made under SEBI rules so that the interests of investors could be protected. Generally, high-net-worth individuals (HNIs) and institutional investors invest through this route. Investing in AIF is more risky than normal investment.
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