SEBI’s Informal Guidance regarding Certain Provisions of the AIF Regulations

SREI Multiple Asset Investment Trust sought clarification on whether the existing SEBI norms limit ‘qualified buyer’ under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (‘SARFAESI Act’) only to those AIFs which are body corporates for the purposes of subscribing to security receipts issued by an asset reconstruction company. In response, SEBI on October 26, 2020 stated that as per the existing regulatory framework, Categories II and III AIF established as a ‘trust’ may qualify as ‘qualified buyer’ under the SARFAESI Act and subscribe to security receipts issued by an asset reconstruction company, subject to the conditions mentioned in the Notification dated May 16, 2018 issued by the RBI, the AIF Regulations, SARFAESI Act and other applicable laws.

Published In:Inter Alia - Quarterly Edition - December 2020 [ English Chinese
Date: December 31, 2020