The Securities & Exchange Board of India (Sebi) on Friday simplified the accreditation requirements for alternative investment funds (AIF) investors. These will come into effect immediately, the regulator said in a circular.
Streamlined Documentation and CA Certification
Sebi has decided to do away with requirement of a detailed net worth break-up submitted as an annexure to the net worth certificate and clarified that it will be optional for chartered accountants to specify whether it meets the specified threshold.
Flexibility in Onboarding vs. Corpus Safeguards
Sebi has also allowed investment managers to finalise/execute the contribution agreement and initiate related operational procedures based on their own assessment if the receipt from an accreditation agency is pending, but said any commitment made by such investor shall not be included in calculation of corpus of the scheme until such investor obtains accreditation certificate from an accreditation agency to maintain the sanctity of several prudential norms for AIFs which are based on corpus.
The circular said, “Schemes of AIFs shall receive funds from such investors only after they obtain accreditation certificate from an accreditation agency.”