Page 5 - Alternative Investment Funds

Sebi introduces guidelines for AIFs on holding investment in demat form

Capital markets regulator on Monday put in place guidelines for Alternative Investment Funds (AIFs) pertaining to holding their investments in dematerialised form along with the appointment of custodian. Under the latest guidelines, AIFs are required to hold their investments in dematerialised form, unless exempted by Sebi. The new framework, effective from October 1, 2024, mandates that any investment made by an AIF after this date must be held in dematerialised form, Sebi said in a circular. However, investments made before this date have been exempted except in cases where the investee company is legally required to facilitate dematerialisation or when the AIF, alone or with other Sebi registered entities, has control over the investee company. Sebi also said investments made before October 1, 2024, falling under these two conditions mentioned must be dematerialised by January 31, 2025. Further, there are exemptions for AIF schemes with tenures ending on or before January 31, 2

Market regulator Sebi tweaks rule for onboarding investors in AIFs

Capital markets regulator Sebi on Friday tweaked the framework for on-boarding investors by Alternative Investment Funds (AIFs). This came in view of amendments to the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. The Regulation 10(a) of AIF norms laid down the criteria for on-boarding investors whereby AIFs are allowed to garner funds from any type of investor -- Indian, foreign, or non-resident Indians -- through the issuance of units. However, when on-boarding investors, the AIF manager must ensure that the investor or its beneficial owner is not listed in the sanctions list by the United Nations Security Council, Sebi said in its circular on Friday. Additionally, the investor should not be a resident in a country identified by the Financial Action Task Force (FATF) as having strategic anti-money laundering or combating the financing of terrorism deficiencies, subject to countermeasures, or a jurisdiction making insufficient progress in addressing these ..

Indiabulls HFC may have to provide Rs 1,000 cr for AIF investments impact

Indiabulls' Assets Under Management (AUM) stood at Rs 63,569 crore as of September 30, 2023, comprising Housing Loans (72%), Loan Against Properties (15%), and commercial credit (13%)

Govt's crackdown on alternative investment funds puts industry on watch

The top seven shadow lenders in the country had invested around $1.35 billion in these so-called AIFs, according to their most recent annual reports

Markets fall amidst profit booking, Covid concerns; sensex down 931 points

Profit booking after the good run was cited as the primary reason for the market rout

RBI issues advisory to banks, financial cos to curb evergreening via AIFs

According to the RBI advisory, banks, NBFCs, and other financial institutions like Nabard and Sidbi will not be able to make investments in any scheme of AIFs which has downstream investments

Sebi extends deadline for AIFs dematerialisation till January 31

Sebi has specified the process to be followed in cases where the investors have yet to provide the demat account details to AIFs

Theme for a dream: Why thematic funds are gaining traction in the market

In contrast, the largecap category has witnes­sed net outflows of Rs 2,894 crore in this period

Sebi specifies process to follow for dematerialising units of AIFs

Capital markets regulator Sebi on Monday specified the process to be followed for dematerialising the units issued, in cases where investors are yet to provide demat account details to Alternative Investment Funds (AIFs). Under the rules issued in June, AIFs with a corpus of Rs 500 crore or more were required to dematerialise all issued units by October 31, 2023. Further, these AIFs will have to issue units only in dematerialised form from November 1, 2023, onwards. Similarly, AIFs with less than Rs 500 crore corpus will have to dematerialise issued units by April 30, 2024, and issue only dematerialised units May 1 onwards. The dematerialisation of AIF units is seen as a significant move towards digitisation, fostering transparency, and enabling effective monitoring of transactions in the financial landscape. In a circular on Monday, Sebi said managers of AIFs will continue to reach out to existing investors to obtain their demat account details and credit the units issued to them

Ready to relook at some AIF norms if assured of no misuse: Sebi official

Ananth Narayan said that RBI has agreed with Sebi's assessment on circumvention by AIFs

Quant trading and investment management firm Alphagrep raises Rs 930 crore

Quantitative trading and investment management firm Alphagrep on Wednesday said it has raised Rs 930 crore from investors for an alternate investment fund. The money has been raised for the Alphamine Absolute Return Fund which was launched in April 2022, according to a statement. The fund follows quant investment strategies that evaluate historical data and generate investment signals using a rules-based framework, it added. "Alphamine Absolute Return Fund follows systematic investment strategies. Our team has devised efficient strategies based on systematic algorithms which have enabled us to have a statistical edge," AlphaGrep Investment Management's chief executive Bhautik Ambani said. The investors include UHNIs (ultra high networth individuals), HNIs (high networth individuals), family offices, and channel partners, he said, adding that the company has paused the current fund for incremental subscriptions. The fund follows a dynamic multi-strategy long-short approach on liste

AMCs' contribution to backstop fund for debt mutual funds tops target

Rs 33K cr CDMDF now operational after they pool initial corpus of Rs 3.1K cr

Grip partners with wealth-tech platform to offer fixed-income products

Under the collaboration, Grip will introduce its products such as Securitised Debt Instruments (SDIs) and corporate bonds, to Centricity's platform

AIFs seek clarity from Sebi on new valuation norms to address gaps

Industry body IVCA has sent suggestions to Sebi while highlighting implementation challenges

Alternative investment funds hope for Sebi leeway, clear demat guidelines

Say working with depositories on transition from physical to electronic

Close-ended alternative investment funds outperform: PMSBazaar data

An alternative investment fund (AIF) is a sophisticated investment vehicle for the wealthy which typically has a minimum investment of Rs 1 crore

PGIM India forays into Rs 8-trn AIF space with Category III fund launch

Fund to focus on multi-year growth trends, identifies discretionary consumption, manufacturing as top themes

PGIM India AMC launches AIF, targets to collect Rs 1,000 cr in FY24

PGIM India Asset Management on Thursday announced the launch of category III Alternative Investment Fund (AIF), which aims to collect up to Rs 1,000 crore. PGIM India AIF is planning to raise Rs 500 crore with an option to collect an additional Rs 500 crore through the greenshoe option this financial year (FY24), the company said in a statement. "With the launch of the AIF, we have expanded our offering to more segments of investors especially in the higher wealth tiers, including family offices," Ajit Menon, CEO at PGIM India Asset Management, said. The total industry size of the AIF sector in the country is about Rs 8.45 lakh crore in terms of commitments raised as of June 2023 and the category III AIF has industry assets under management of Rs 85,057 crore in terms of commitments raised during the same period. "The endeavour is to create investment portfolios focussing on opportunities across segments that may command a faster growing profit pools triggered by the changing natu

AIF commitments inch to Rs 8.5 trillion in June quarter, shows data

Between April to July, Sebi received 55 applications for AIF registrations

Sebi reduces time limit for AIFs, VCs to invest overseas to 4 months

Capital markets regulator Sebi on Friday reduced the validity period of approval given to alternative investment funds (AIFs) and venture capital funds (VCFs) for making overseas investments to four months from six months at present. If these funds fail to make investments within this time limit, then Sebi can allocate their unutilized limits to other applicant AIFs and VCs. The decision has been taken considering into account the recommendation of the Alternative Investments Policy Advisory Committee, the Securities and Exchange Board of India (Sebi) said in a circular. Under the rule, AIFs and VCFs have a time limit of six months from the date of prior approval from Sebi to making the allocated investments in offshore venture capital undertakings. In case the applicant AIFs and VCFs does not utilize the limits allocated to them within six months then Sebi can allocate such unutilized limit to another applicant. "It has been decided to reduce the aforesaid time limit for making