Regulation 23 - Valuation - Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012

Valuation. 23. (1) The Alternative Investment Fund shall 1 [ carry out valuation of its investments in the manner specified by the Board from time to time and ] provide to its investors, a description of its valuation procedure and of the methodology for valuing assets. (2) Category I and Category II Alternative Investment Funds shall undertake valuation of their investments, atleast once in every six months, by an independent valuer appointed by the Alternative Investment Fund: Provided that such period may be enhanced to one year on approval of atleast seventy-five percent of the investors by value of their investment in the Alternative Investment Fund. (3) Category III Alternative Investment Funds shall ensure that calculation of the net asset value (NAV) is independent from the fund management function of the Alternative Investment Fund and such NAV shall be disclosed to the investors at intervals not longer than a quarter for close ended Funds and at intervals not longer than a month for open ended funds 2[ : ] 3 [ Provided that for the purpose of calculation of NAV, Category III Alternative Investment Funds shall undertake valuation of their investment in unlisted securities and listed debt securities by an independent valuer. ] 4 [ (4) The Manager shall ensure that the Alternative Investment Fund appoints an independent valuer who satisfies the criteria specified by the Board from time to time. (5) The Manager and the key management personnel of the Manager shall ensure that the independent valuer computes and carries out valuation of the investments of the scheme of the Alternative Investment Fund in the manner specified by the Board from time to time. (6) The Manager shall be responsible for true and fair valuation of the investments of the scheme of the Alternative Investment Fund: Provided that in case the established policies and procedures of valuation do not result in fair and appropriate valuation, the Manager shall deviate from the established policies and procedures in order to value the assets or securities at a fair value and document the rationale for such deviation: Provided further that such deviation and its rationale shall be reported to the trustee or the trustee company or the Board of Directors or designated partners of the Alternative Investment Fund and investors of the Alternative Investment Fund. ] ************** NOTES:- 1. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/132 dated 15-06-2023 w.e.f. 01-11-2023 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2023/132 dated 15-06-2023 w.e.f. 01-11-2023 before it was read as, . 3. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/132 dated 15-06-2023 w.e.f. 01-11-2023 4. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/132 dated 15-06-2023 w.e.f. 01-11-2023