Guidelines for borrowing by Category I and Category II AIFs and maximum permissible limit for extension of tenure by LVFs

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e by Large Value Fund for Accredited Investors (LVFs). Copy of the aforesaid notification is available at link. A. Guidelines for borrowing by Category I and Category II AIFs 2. In terms of Regulation 16(1)(c) and Regulation 17(c) of AIF Regulations, Category I and Category II AIFs shall not borrow funds directly or indirectly or engage in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day-to-day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by SEBI from time to time. 3. In this regard, in order to f .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nt drawdown timelines to investors. 4.6. The manager shall disclose the details with respect to amount borrowed, terms of borrowing and repayment to all the investors of the AIF/scheme, on a periodic basis as per the terms of agreement with the investors of the AIF. 5. Further, all Category I and Category II AIFs shall maintain thirty days cooling off period between two periods of borrowing as permissible under AIF Regulations. The cooling off period of thirty days shall be calculated from the date of repayment of previous borrowing. B. Maximum permissible limit for extension of tenure by LVFs 6. In terms of proviso to Regulation 13(5) of AIF Regulations, a LVF may extend its tenure up to five years subject to the approval of two-thirds of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... se may be, shall ensure that the Compliance Test Report prepared by the manager in terms of Chapter 15 of Master Circular for AIFs , includes compliance with the provisions of this circular. 10. This circular shall come into force with immediate effect. 11. This circular is issued with the approval of the competent authority. 12. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 , read with Regulations 13(5) , 16(1)(c) , 17(c) and 36 of AIF Regulations , to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 13. The circular is available on SEBI website at www.sebi.gov.in under the categori .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X