The
Securities and Exchange Board of India (‘SEBI’)
issued a circular on July 3, 2018 regarding overseas investment by Alternate
Investment Funds (AIFs) and Venture Capital Funds (VCFs). The provisions of
this circular became applicable from July 2, 2018.
Securities and Exchange Board of India (‘SEBI’)
issued a circular on July 3, 2018 regarding overseas investment by Alternate
Investment Funds (AIFs) and Venture Capital Funds (VCFs). The provisions of
this circular became applicable from July 2, 2018.
SEBI
vide a circular dated October 1, 2015 had allowed overseas investment by AIFs
and VCFs to the extent of USD 500 million. In consultation with the RBI, the
said limit has been increased to USD 750 million. Additionally, in order to
monitor the utilization of overseas investment limits, AIFs and VCFs have to
mandatorily disclose the following by reporting them on the SEBI intermediary
portal (https://siportal.sebi.gov.in):
vide a circular dated October 1, 2015 had allowed overseas investment by AIFs
and VCFs to the extent of USD 500 million. In consultation with the RBI, the
said limit has been increased to USD 750 million. Additionally, in order to
monitor the utilization of overseas investment limits, AIFs and VCFs have to
mandatorily disclose the following by reporting them on the SEBI intermediary
portal (https://siportal.sebi.gov.in):
1.
The utilization of the overseas limits within 5
working days of such utilization.
The utilization of the overseas limits within 5
working days of such utilization.
2.
In case the overseas limit has not been utilized
within 6 months from the date of SEBI approval (‘validity period’), the same has
to be reported within 2 working days after expiry of the validity period.
In case the overseas limit has not been utilized
within 6 months from the date of SEBI approval (‘validity period’), the same has
to be reported within 2 working days after expiry of the validity period.
3.
In case a part of the overseas limit has not been
utilized within the validity period then the same has to be reported within 2
working days after expiry of the validity period.
In case a part of the overseas limit has not been
utilized within the validity period then the same has to be reported within 2
working days after expiry of the validity period.
4.
In case an AIF/ VCF wishes to surrender the
overseas limit during the validity period, it has to be reported within 2
working days from the date of decision to surrender the limit.
In case an AIF/ VCF wishes to surrender the
overseas limit during the validity period, it has to be reported within 2
working days from the date of decision to surrender the limit.
