{"id":1671,"date":"2021-01-25T08:56:37","date_gmt":"2021-01-25T08:56:37","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1671"},"modified":"2021-02-12T09:29:49","modified_gmt":"2021-02-12T09:29:49","slug":"key-changes-made-in-alternative-investment-funds-amendment-regulations-2021","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/","title":{"rendered":"Key Changes Made in Alternative Investment Funds (Amendment) Regulations 2021"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Securities Exchange Board of India (SEBI), by way of a notification, dated 08.01.2021, has declared about the amendments made in the SEBI (Alternative Investment Funds) Regulations 2012. Further, the powers concerning amendments are provided under section 11, 12, and 30 of the SEBI Act 1992. Also, the said amended regulations will be known as SEBI (Alternative Investment Funds) (Amendment) Regulations 2021.<\/p>\n\n\n\n<p>Moreover, it needs to be taken under due\nconsideration that these regulations came into force after that last amendment\nmade, i.e., SEBI (Alternative Investment Funds) (Amendment) Regulations 2020,\non 19.10.2020.<\/p>\n\n\n\n<p>Further, the said rules will come into force from the date of publication in the official gazette. In this blog, we will discuss the concept of Alternative Investment Fund, together with the key changes made in SEBI (Alternative Investment Funds) (Amendment) Regulations 2021.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4dee6dc12d9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4dee6dc12d9\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Concept_of_Alternative_Investment_Fund\" title=\"Concept\nof Alternative Investment Fund\">Concept\nof Alternative Investment Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Objective_of_SEBI_Alternative_Investment_Funds_Regulations_2012\" title=\"Objective\nof SEBI (Alternative Investment Funds) Regulations 2012\">Objective\nof SEBI (Alternative Investment Funds) Regulations 2012<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Changes_Made_in_SEBI_Alternative_Investment_Funds_Amendment_Regulations_2021\" title=\"Changes Made in SEBI (Alternative Investment Funds) (Amendment) Regulations 2021\">Changes Made in SEBI (Alternative Investment Funds) (Amendment) Regulations 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Substitution_of_Symbol_in_Proviso_of_Sub-rule_6\" title=\"Substitution\nof Symbol in Proviso of Sub-rule (6)\">Substitution\nof Symbol in Proviso of Sub-rule (6)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Insertion_of_Proviso_to_Sub-rule_6\" title=\"Insertion\nof Proviso to Sub-rule (6)\">Insertion\nof Proviso to Sub-rule (6)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/key-changes-made-in-alternative-investment-funds-amendment-regulations-2021\/#Copy_of_the_Official_Notification\" title=\"Copy of the Official Notification\">Copy of the Official Notification<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Alternative_Investment_Fund\"><\/span><strong>Concept\nof Alternative Investment Fund<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term AIF or Alternative Investment\nFund denotes a fund incorporated or established in India. It is primarily a\nprivately pooled investment vehicle which gathers funds from the well-known and\nsophisticated investors, both Indian and Foreign. Further, the funds collected\nare used in accordance with the stipulations of the defined investment policy,\ni.e., for the benefit of its investors.<\/p>\n\n\n\n<p>However, it shall be relevant to state\nthat an AIF or Alternative Investment Fund does not comprise of the funds\ncovered under the SEBI (Collective Investment Scheme) Regulations 1999 and SEBI\n(Mutual Funds) Regulations 1996.<\/p>\n\n\n\n<p>Lastly, the forms in which an AIF can be\nregistered in India are as follows:<\/p>\n\n\n\n<ol><li>Public or <strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\">Private Limited Company<\/a><\/strong>;<\/li><li>Body Corporate under the Central or State Legislature Laws;<\/li><li>Trust;<\/li><li><strong><a href=\"https:\/\/swaritadvisors.com\/limited-liability-partnership-registration\" class=\"text-primary\">Limited Liability Partnership<\/a><\/strong>;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objective_of_SEBI_Alternative_Investment_Funds_Regulations_2012\"><\/span><strong>Objective\nof SEBI (Alternative Investment Funds) Regulations 2012<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The regulations concerning AIF, i.e., SEBI (Alternative Investment Funds) Regulations 2012 endeavour to extend its ambit on the unregulated funds with an aim to provide the following:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3664-Converted-Swarit.png\" alt=\"Objective of SEBI\" class=\"wp-image-1674\" width=\"468\" height=\"474\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3664-Converted-Swarit.png 800w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3664-Converted-Swarit-296x300.png 296w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/3664-Converted-Swarit-768x778.png 768w\" sizes=\"(max-width: 468px) 100vw, 468px\" \/><\/figure><\/div>\n\n\n\n<ol><li>Systemic\nStability;<\/li><li>Increasing\nMarket Efficiency;<\/li><li>Encouraging\nthe&nbsp; Formation of New Capital;<\/li><li>Consumer\nProtection;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Changes_Made_in_SEBI_Alternative_Investment_Funds_Amendment_Regulations_2021\"><\/span><strong>Changes Made in SEBI (<\/strong><strong>Alternative Investment Funds<\/strong><strong>) (Amendment) Regulations 2021<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The two main changes made under\nRegulation 20 by the board in the SEBI (Alternative Investment Funds)\n(Amendment) Regulations 2021 are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Substitution_of_Symbol_in_Proviso_of_Sub-rule_6\"><\/span><strong>Substitution\nof Symbol in Proviso of Sub-rule (6)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the first change, the SEBI has decided to substitute the symbol \u201c.\u201d with the symbol \u201c:\u201d under clause (iv) of the proviso of sub-regulation (6).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Insertion_of_Proviso_to_Sub-rule_6\"><\/span><strong>Insertion\nof Proviso to Sub-rule (6)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Under\nthe next change, the SEBI has decided to insert an extra proviso after clause\n(iv) of the proviso of sub-regulation (6). The proviso inserted is as follows:<\/p>\n\n\n\n<p>Provided further,&nbsp; that clauses&nbsp; (i)&nbsp; and&nbsp; (ii)&nbsp; shall not be applicable to an Alternative&nbsp; Investment&nbsp; Fund (AIF) in&nbsp;which&nbsp;each an investor other than the Sponsor, Manager, Employees, or Directors of the Alternative Investment Fund(AIF) or the employees or directors of the Manager, has committed to invest not below than Rs 70 crores (or an equivalent amount in any currency other&nbsp;than Indian Rupee) and has furnished a waiver to the AIF (Alternative Investment Fund)&nbsp; in respect&nbsp;of the compliance with the said clauses, in the manner prescribed by the Board.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the main objective behind the implementation of the SEBI (Alternative Investment Funds) (Amendment) Regulations 2021 was to replace, amend or insert some of the provisions specified under the SEBI (Alternative Investment Funds) Regulations 2012. <\/p>\n\n\n\n<p>Also,\nit shall be pertinent\nto state that an AIF (Alternative Investment Fund) does not comprise of the\nfunds covered under the SEBI (Collective Investment Scheme) Regulations 1999\nand SEBI (Mutual Funds) Regulations 1996.<\/p>\n\n\n\n<p>Further, in case of any other doubt or complexity, reach out to Swarit Advisors, our proficient and experienced Company and SEBI Law experts will solve out all your queries and will assist in providing the modes relating to the issuance of shares as well.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/companies-compromises-arrangements-amalgamation-second-amendment-rules-2020\/\">Companies (Compromises, Arrangements &amp; Amalgamation) Second Amendment Rules 2020: Key Highlights<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Copy_of_the_Official_Notification\"><\/span><strong>Copy of the Official Notification<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/01\/SEBI-AIF-2021.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">SEBI-AIF-2021<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Securities Exchange Board of India (SEBI), by way of a notification, dated 08.01.2021, has declared about the amendments made in the SEBI (Alternative Investment Funds) Regulations 2012. Further, the powers concerning amendments are provided under section 11, 12, and 30 of the SEBI Act 1992. Also, the said amended regulations will be known [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1673,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[50],"tags":[375],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1671"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1671"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1671\/revisions"}],"predecessor-version":[{"id":1682,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1671\/revisions\/1682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1673"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1671"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1671"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1671"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}