Clarifications on Audit Requirement for AIFs

SEBI has, by way of its Circular dated June 12, 2020, issued certain clarifications in relation to the Circular on disclosure standards for AIFs issued by SEBI on February 5, 2020. Some of the key clarifications are:

i.    timeline for compliance audit for the FY 2019-2020 has been set as December 31, 2020. Going forward, compliance audit is required to be completed within 6 months from the end of the FY and the audit report along with corrective steps is required to be submitted to the trustee of the AIF, the manager and SEBI within 6 months from the end of the FY; and

ii.   audit requirement will not apply to AIFs which have not raised any funds from their investors subject to submission of certificates from chartered accountants.

Published In:Inter Alia - Quarterly Edition - June 2020 [ English Chinese japanese ]
Date: June 30, 2020