The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) allow Alternative Investment Funds (“AIF(s)”) to raise funds from any investor whether Indian, foreign or non-resident Indians, by way of issue of units.
With regard to foreign investment in AIFs, Securities and Exchange Board of India (“SEBI”) vide Circular dated December 9, 2022 (“Circular”) has specified that at the time of on-boarding such investors, the manager of the AIF shall ensure that -
SEBI has further specified that subsequent to the on-boarding, if the investors (including the investors already on-boarded to existing schemes of AIFs) do not meet the aforementioned conditions, the manager of the AIF shall not drawdown any further capital contribution from such investor until the conditions specified above are met again.
Please find a copy of the Circular here.
This update has been contributed by Aastha (Partner) and Arth Singhal (Associate).
Argus Knowledge Centre is now on WhatsApp! Send us a message on +91 8433523504 to receive updates from our Knowledge Centre.
7A, 7th Floor, Tower C, Max House,
Okhla Industrial Area, Phase 3
New Delhi – 110020
The rules of the Bar Council of India do not permit advocates to solicit work or advertise in any manner. This website has been created only for informational purposes and is not intended to constitute solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work in any manner. By clicking on 'Agree' below, you acknowledge and confirm the following:
a) there has been no solicitation, invitation, advertisement or inducement of any sort whatsoever from us or any of our members to solicit any work through this website;
b) you are desirous of obtaining further information about us on your own accord and for your use;
c) no information or material provided on this website is to be construed as a legal opinion and use of this website will not create any lawyer-client relationship;
d) while reasonable care has been taken in ensuring the accuracy of the contents of the website, Argus Partners shall not be responsible for the results of any actions taken on the basis of information provided in this website or for any error or omission in the website; and
e) in cases where the user has any legal issues, the user must seek independent legal advice.