In light of the Covid-19 pandemic, SEBI has extended the timeline to comply with regulatory norms for AIFs.
A few months back, SEBI had introduced a new set of rules for AIF players to disclose performance across AIF categories. AIFs players were 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.
Now, AIFs players get time till October 1, 2020 to comply with these regulatory norms.
In addition, SEBI has relaxed norms for association representing AIF. SEBI said that any AIF association representing 33% of AIF players can finalize the respective benchmark for each scheme. Earlier, the criteria for such a representation was 51%. Also, the association can decide the format in which the performance is disclosed.
Further, SEBI has also relaxed norms relating to requirement of audit of data on cash flows and valuation by AIFs. According to the new norms, AIFs who did not raise funds within six months need not get their accounts audited. However, they will have to submit a certificate declaring that they have not raised any funds within 6 months from the end of the financial year.