In light of the Covid-19 pandemic, SEBI has given a two-month extension to AIFs to comply with regulatory norms.
Last month, SEBI introduced a new set of rules for AIF players to disclose performance across AIF categories. AIFs players have been asked to disclose performance of schemes with respect to benchmark in all marketing communication and standardise the private placement memorandum issued by AIFs to their clients.
With the relaxation, AIF players have time till May 31, 2020 tocomply with these regulatory norms.
Here are the other key changes to AIF regulations from June 1, 2020
- AIFs will have to disclose their performance against their respective benchmark
- AIFs to provide audited data on cash flows and valuation
- Performance should be disclosed on six months basis i.e. as on September 30 and March 31 of each year
- Performance reporting should be disclosed on pre-tax net NAV
- Benchmarking agencies have to compile data from all AIFs separately since 2012
- Performance disclosure should be reported in both INR and USD terms
- Any AIF association representing 51% of AIF players will have to finalize the respective benchmark for each scheme. Also, the association has to decide the format in which the performance is disclosed
- The association will have to set timeline to follow these reporting standards
- The progress report on these reporting standards have to be submitted to SEBI each month
- AIFs will have to disclose performance of their funds prominently in all marketing communication