SEBI by way of its Notification dated June 15, 2023 (‘Notification’) amended the SEBI Alternative Investment Fund (‘AIF’) Regulations, 2012 (‘AIF Regulations’). Details of certain key amendments are summarized below:

i.    introduction of corporate debt market development fund as a new category of AIF, and the concepts of liquidation scheme and liquidation period;

ii.   amendments to the eligibility criteria specified for key investment team to include certification requirement, and introduction of eligibility criteria for compliance officer as specified by SEBI;

iii.  AIFs to mandatorily issue units in dematerialised form;

iv.   mandatory investor consent requirement for buying or selling investments, from or to associates, schemes of AIFs sponsored or managed by manager, sponsor, or its associates or an investor committing 50% of the corpus of the AIF; and

v.    changes pertaining to valuation including responsibility on the manager to ensure the appointment of an independent valuer for the AIF, for true and fair valuation of the investments of the scheme of the AIF. The amendments pertaining to valuation will come into force with effect from November 1, 2023.