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Sebi asks hedge funds to inform about net investments in derivatives

In June, Sebi allowed hedge funds to invest in commodity derivatives, in a move to deepen the market and boost liquidity

Press Trust of India  |  New Delhi 

Representative image
Representative image

regulator on Friday asked to report about cumulative net investments, made by them in in a prescribed format.

Besides, such funds need to inform about the maximum investment made by them in a single underlying commodity and their monthly exposure.


Category-III alternative investment funds (AIFs) or have to submit the monthly/quarterly report in the revised format for the period ended September 30 onwards.

In June, allowed to invest in commodity derivatives, in a move to deepen the and boost

However, this is subject to certain conditions, like funds should not invest more than 10 per cent of the investible funds in one underlying commodity.

Besides, they should make disclosure in private placement memorandum issued to investors about investment in and should take consent of the existing investors if such AIFs intend to invest in such derivatives.

Category-III AIFs are those that employ diverse or complex trading strategies and may employ leverage, including through investment in listed or unlisted derivatives.

First Published: Fri, September 29 2017. 21:08 IST
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