TMI BlogConditions for Category I Alternative Investment FundsX X X X Extracts X X X X X X X X Extracts X X X X ..... ) Category I Alternative Investment Funds may engage in hedging, including credit default swaps in terms of the conditions as may be specified by the Board from time to time. ] 10 [ **** ] (c) Category I Alternative Investment Funds shall not borrow funds directly or indirectly or engage in any leverage except for meeting temporary funding requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the 1 [investable funds]. 26 [ Provided that Category I Alternative Investment Funds may create encumbrance on equity of investee company, which is in the business of development, operation or management of projects in any of the infrastructure sub-sectors listed in the Harmonised Master ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the SME exchange or SME segment of an exchange pursuant to due diligence of such companies subject to the following conditions: (i) the fund shall disclose any trading in securities pursuant to such duediligence, within two trading days of such trading, to the stock exchanges where the investee company is listed; (ii) such investment shall be locked in for a period of one year from the date of investment. ] . (3) The following conditions shall apply to SME Funds in addition to conditions laid down in sub-regulation (1):- (a) atleast seventy five percent of the 4 [investable funds] shall be invested in unlisted securities or partnership interest of venture capital undertakings or investee companies which are SMEs or in companies listed or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... units of social ventures or in securities of social enterprises: Provided that an existing social impact fund may invest the remaining investable funds in securities of not for profit organizations registered or listed on a social stock exchange with the prior consent of atleast 75% of the investors by value of their investment; ] (b) such funds may accept grants, provided that such utilization of such grants shall be restricted to clause (a) 6 [:] 7 [Provided that the amount of grant that may be accepted by the fund from any person shall not be less than 21 [ ten lakh rupees ] : 13 Provided further that the minimum amount of grant shall not apply to accredited investors: ] Provided further that no profits or gains shall accrue to the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... astructure projects. *********** 1 Substituted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w.e..f 16-09-2013 for the word corpus 2 Ibid. 3 Substituted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w.e..f 16-09-2013 for the word corpus 4 Substituted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w.e..f 16-09-2013 for the word corpus 5 Substituted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w.e..f 16-09-2013 for the word corpus 6 Substituted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w.e..f 16-09-2013 for the symbol . . 7 Inserted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge or SME segment of an exchange; 14. Omitted vide Notification No. SEBI/LAD-NRO/GN/2021/41 dated 13-08-2021 before it was read as (b) not more than one-third of the 3 [investable funds] shall be invested in: (i) subscription to initial public offer of a venture capital undertaking whose shares are proposed to be listed; (ii) debt or debt instrument of a venture capital undertaking in which the fund has already made an investment by way of equity or contribution towards partnership interest; (iii) preferential allotment, including through qualified institutional placement, of equity shares or equity linked instruments of a listed company subject to lock in period of one year; (iv) the equity shares or equity linked instruments of a financia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n securities pursuant to such due-diligence, within two working days of such acquisition or dealing, to the stock exchanges where the investee company is listed; (ii) such investment shall be locked in for a period of one year from the date of investment. : 17. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/41 dated 13-08-2021 before it was read as: Chapter XB of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 18. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/41 dated 13-08-2021 before it was read as: (c) such funds shall be exempt from regulation 3 and 3A of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 in respect of inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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