Regulation 13 - Tenure - Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012

Tenure. 13. (1) Category I Alternative Investment Fund and Category II Alternative Investment Fund shall be close ended and the tenure of fund or scheme shall be determined at the time of application subject to sub-regulation (2) of this regulation. (2) Category I and II Alternative Investment Fund or schemes launched by such funds shall have a minimum tenure of three years. (3) 3 [ Schemes of ] Category III Alternative Investment Fund may be open ended or close ended. 4 [ (4) The manner of calculating the tenure of a close ended scheme of an Alternative Investment Fund, including the manner of modification of the tenure, may be specified by the Board from time to time. ] 5 [ (5) ] Extension of the tenure of the close ended Alternative Investment Fund may be permitted up to two years subject to approval of two-thirds of the unit holders by value of their investment in the Alternative Investment Fund 1 [ : ] 7 [ Provided that a large value fund for accredited investors may be permitted to extend its tenure up to five years subject to the approval of two-thirds of the unit holders by value of their investment in the large value fund for accredited investors: Provided further that the extension in tenure of any existing scheme of a large value fund for accredited investors shall be subject to such conditions as may be specified by the Board from time to time. ] 6 [ (6) In the absence of consent of unit holders under sub-regulation (5) or upon expiry of the extended tenure, the Alternative Investment Fund or the scheme of the Alternative Investment Fund shall be wound up in accordance with Regulation 29 of these regulations. ] ************* NOTES:- 1. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/33 dated 03-08-2021 before it was read as . 2. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/33 dated 03-08-2021 3. Inserted vide Notification No. SEBI/LAD-NRO/GN/2021/41 dated 13-08-2021 4. Inserted vide Notification No SEBI/LAD-NRO/GN/2022/105 dated 15-11-2022 5. Re-Numbered vide Notification No SEBI/LAD-NRO/GN/2022/105 dated 15-11-2022 before it was read as, (4) (5) 6. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/132 dated 15-06-2023 before it was read as, 5 [ (6) ] In the absence of consent of unit holders, the Alternative Investment Fund shall fully liquidate within one year following expiration of the fund tenure or extended tenure. 7. Substituted vide Notification No. SEBI/LAD-NRO/GN/2024/198 dated 05-08-2024 before it was read as, 2 [ Provided that large value funds for accredited investors may be permitted to extend its tenure beyond two years, subject to terms of the contribution agreement, other fund documents and such conditions as may be specified by the Board from time to time. ]