Sebi proposes direct reporting of AIFs' PPM changes to streamline compliance cost
At present, AIFs have to intimate any change in the terms of PPM through a merchant banker to Sebi, along with a due diligence certificate from them. It has to be done on a consolidated basis within one month of the end of each financial year.
MUMBAI: The Securities and Exchange Board of India () has proposed that certain changes in (PPM) of (AIFs) can be submitted directly to it rather than through a . The move is aimed to rationalise cost of compliance for AIFs and also facilitate ease of doing business.At present, AIFs have to intimate any change in the terms of PPM through a merchant banker to Sebi, along with a due diligence certificate from them. It has to be done on a consolidated basis within one month of the end of each financial year.
Further, the regulator has proposed to exempt large value fund () for accredited investors from the requirement of intimating any changes in the terms of PPM through a merchant banker.
LVFs may directly file any changes in the terms of PPM with SEBI, along with a duly signed and stamped undertaking by CEO of the manager of the AIF and compliance officer of manager of the AIF,” Sebi said in a discussion paper.
Source: Stocks-Markets-Economic Times
