The Securities and Exchange Board of India has updated its regulations concerning Large Value Funds for Accredited Investors. Under the revised rules, these funds, which include Alternative Investment Funds or schemes of AIFs where each investor is an accredited investor contributing at least Rs 70 crore, can now extend their investment tenure by up to five years.
This extension is contingent upon the approval of at least two-thirds of the unitholders, based on the value of their investments.
Additionally, SEBI has introduced new borrowing provisions for Category I and II AIFs. These funds are permitted to borrow for up to 30 days to address temporary shortfalls in investor drawdowns.
The borrowing can occur up to four times a year and cannot exceed 10% of the investable funds. This provision aims to enhance operational flexibility and ease of doing business, while maintaining conditions set by SEBI.
(With inputs from PTI)
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