SEBI (Alternate Investment Funds) (Second Amendment) Regulations, 2021

SEBI, vide notification dated May 05, 2021, has amended SEBI (Alternate Investment Funds) Regulations, 2012. The effective date of amendment is the date of publication in the Official Gazette i.e. May 06, 2021.

SEBI has introduced following amendments in the SEBI (Alternative Investment Funds) Regulation, 2012 –

Circular dated May 05, 2021

  1. provides a framework for Alternative Investment Funds (AIFs) to invest simultaneously in units of other AIFs and directly in securities of investee companies.
  2. provides a definition of -G criteria for investment by Angel Funds in start-ups.
  3. prescribes a Code of Conduct for AIFs, key management personnel of AIFs, trustee, trustee company, directors of the trustee company, designated partners or directors of AIFs, as the case may be, Managers of AIFs and their key management personnel and members of Investment Committees and bring clarity in the responsibilities cast on members of Investment Committees; and
  4. remove the negative list from the definition of venture capital undertaking.