35.94 F
London
March 3, 2024
PI Global Investments
Alternative Investments

Sebi tweaks rule for on-boarding investors in Alternative Investment Funds


Capital markets regulator Sebi on Friday (January 12) tweaked the framework for onboarding investors by Alternative Investment Funds (AIFs). This came in view of amendments to the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005.

Regulation 10(a) of AIF norms laid down the criteria for onboarding investors whereby AIFs are allowed to garner funds from any type of investor — Indian, foreign, or non-resident Indians — through the issuance of units.

However, when on-boarding investors, the AIF manager must ensure that the investor or its beneficial owner is not listed in the sanctions list by the United Nations Security Council, Sebi said in its circular on Friday.

Additionally, the investor should not be a resident in a country identified by the Financial Action Task Force (FATF) as having strategic anti-money laundering or combating the financing of terrorism deficiencies, subject to countermeasures, or a jurisdiction making insufficient progress in addressing these deficiencies, it added.

If an investor, who has previously joined the AIF, no longer meets these conditions, the AIF manager is prohibited from drawing further capital contributions from that investor for making investments until the investor complies with the specified conditions, Sebi said.

The move is aimed at compliance with international sanctions and anti-money laundering measures in the context of AIF investments. The new framework will come into force with immediate effect.



Source link

Related posts

Tau Group Closes €11 Million Extension to Series-B Round to Fuel Growth and Enhance Production Capacity

D.William

PGIM Investments hires Merill Lynch veteran as global head of alternative investments

D.William

2024-01-16 | NYSE:JPM | Press Release

D.William

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.