Sebi mulls tenure extension for AIFs to continue unliquidated investments

Pooled investment vehicles may be allowed to carry forward unliquidated investments to a fresh scheme at the end of tenure

The Securities and Exchange Board of India (Sebi) has proposed to allow alternate investment funds (AIFs)—pooled investment vehicles used by the wealthy—to carry forward the unliquidated investments of a scheme beyond their tenure period.

At present, AIFs can extend the tenure of the scheme by two years upon approval from two-third investors. After expiration of the tenure, the AIF has to fully liquidate the scheme within one year.

In a consultation paper floated on Friday, Sebi has proposed that AIFs and Large Value Funds for Accredited Investors (LVFs) be permitted to close the existing scheme and transfer the unliquidated investments