Sebi relaxes regulatory framework for AIFs targeting 'accredited investors'

The Securities and Exchange Board of India (Sebi), on Friday, relaxed the regulatory framework for alternative investment funds (AIFs) targeting ‘accredited investors’ — those investors with annual income of over Rs 2 crore or networth of at least Rs 7.5 crore. AIFs that are ‘large value funds for accredited investors’ have been exempted from filing their placement memorandum by Sebi and merely have to intimate the regulator about the launch of their scheme.

Further, Sebi also relaxed the conditions for such funds which are close-ended in nature to extend their tenure beyond two years, provided appropriate disclosures are made. Sebi also has directed all AIFs to designate an employee as compliance officer, who shall be a person other than the CEO. “The compliance officer shall be responsible for monitoring compliance with the provisions of the SEBI Act, AIF Regulations and circulars,” Sebi said in a circular.