AIF industry seeks clarity on liquidation scheme for unsold investments

Industry feels there's ambiguity over applicability for funds which have exhausted the one-year period

The alternative investment funds (AIF) industry is seeking more clarity from the Securities and Exchange Board of India (Sebi) on the new norms around liquidation of schemes which provides them with a framework to deal with investments not sold due to lack of liquidity during the winding up process of a scheme. 

The markets regulator has allowed AIFs to transfer such unliquidated investments to a new close-ended scheme called ‘liquidation scheme’ by the same AIF upon approval of 75 per cent of the investors, by value, from the original scheme. 

This AIF will have a period of one year available