The circular outlines guidelines for borrowing by Category I and ...

Guidelines for AIFs' Borrowing & LVFs' Tenure: AIFs can borrow up to 20% for drawdown shortfall; 30-day cooling off. LVFs can extend up to 5 years with unitholders' approval.

Circulars SEBI

August 20, 2024

The circular outlines guidelines for borrowing by Category I and Category II Alternative Investment Funds (AIFs) and maximum permissible limit for extension of tenure by Large Value Funds for Accredited Investors (LVFs). Category I and II AIFs can borrow up to 20% of proposed investment or 10% of investable funds or pending commitment from investors, whichever is lower, to meet temporary shortfall in drawdown amount from investors, subject to conditions. A 30-day cooling off period is mandated between two borrowing periods. LVFs can extend tenure up to 5 years with approval of two-thirds unitholders by value, aligning with this requirement within 3 months. Existing LVF schemes can revise original tenure with consent of all investors. The circular supersedes previous conditions for LVF tenure extension and mandates compliance reporting by AIFs.

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The circular outlines guidelines for borrowing by Category I and ...

Guidelines for AIFs' Borrowing & LVFs' Tenure: AIFs can borrow up to 20% for drawdown shortfall; 30-day cooling off. LVFs can extend up to 5 years with unitholders' approval.

Circulars SEBI

August 20, 2024

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