Change in reporting norms for Category III Alternative Investment Funds ("AIFs") regarding investment in commodity derivatives market - SEBI - SEBI/HO/IMD/DF1/CIR/P/2017/110

CIRCULAR SEBI/HO/IMD/DF1/CIR/P/2017/110 September 29, 2017 To All Registered Category III Alternative Investment Funds All Custodian(s) of Securities Dear Sir / Madam, Sub: Change in reporting norms for Category III Alternative Investment Funds ( AIFs ) regarding investment in commodity derivatives market. 1. In terms of circular no. SEBI/HO/CDMRD/DMP/CIR/P/2017/61 dated June 21, 2017, the Category III Alternative Investment Funds (AIFs) are allowed to participate in the commodity derivatives market, subject to certain conditions which inter-alia include the following: i. Category III AIFs shall invest not more than ten percent of the investable funds in one underlying commodity. ii. Category III AIF shall be subject to the reporting requirements as may be specified by SEBI. 2. In view of the above, it is decided to revise the reporting formats for Category III AIFs so as to capture the information pertaining to investment in commodity derivatives as per enclosed Annexure. Accordingly, circular no.CIR/IMD/DF/10/2013 dated July 29, 2013 issued for operational, prudential and reporting requirements for AIFs stands modified. 3. All Category III AIFs are advised to submit the monthly/quarterly report in the revised format for the period ended September 30, 2017 onwards. 4. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 5. This circular is available on SEBI website at www.sebi.gov.in under the categories Circulars and Info for - Alternative Investment Funds . Yours faithfully, Naveen Sharma Deputy General Manager 022-26449709 Email: [email protected] Annexure: i. Reporting format for Category III AIFs which do not undertake leverage: Table 2- Cumulative net investments by the AIF as at the end of quarter (in Rs. Crore) (Scheme-wise) Name of the scheme In Unlisted equity shares/ equity linked instruments/L LP interest In listed equity (excluding in listed/to be listed on SME exchange) In Debt/ securitised debt instruments In units of other AIFs In liquid funds In listed/ to be listed securities on SME exchange In commodity derivatives Others Total Table 8- Maximum Investment made in a single underlying commodity (Schemewise) Name of the Scheme Name of the underlying commodity Amount invested (in Rs. Crore) Amount of investment as a % of total investible funds ii. Reporting format for Category III AIFs which undertake leverage: Table 2- Exposure by the AIF as at the end of month (in Rs. Crore) (Scheme-wise) Nam e of the scheme In listed equity and ETFs Long Futures Short futures Long calls Short calls Equity Commodity Other s* Equity Commodity Other s* Equity Commodity Others* Equity Commodity Other s* Long puts Short puts Cash cash equivalents Others* Gross Total (Sum of all exposures) Equity Commodity Others* Equity Commodity Others* * Specific details to be provided. Table 8- Maximum Investment made in a single underlying commodity (Scheme wise) Name of the Scheme Name of the underlying commodity Amount invested (in Rs. Crore) Amount of investment as a % of total investible funds