TMI BlogStandardised approach to valuation of investment portfolio of Alternative Investment Funds (AIFs)X X X X Extracts X X X X X X X X Extracts X X X X ..... y out valuation of their investments in the manner specified by SEBI from time to time. 3. In this regard, following is specified: 3.1. Valuation of securities for which valuation norms have already been prescribed under SEBI (Mutual Funds) Regulations, 1996 ( MF Regulations ), shall be carried out as per the norms prescribed under MF Regulations. 3.2. Valuation of securities which are not covered in para 3.1 above, shall be carried out as per valuation guidelines endorsed by any AIF industry association, which in terms of membership represents at least 33% of the number of SEBI registered AIFs. The eligible AIF industry association shall endorse appropriate valuation guidelines after taking into account recommendations of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... practices/policies, assumptions/projections, valuation methodology and approach, etc. and reasons thereof. 6.2. Any change in the methodology and approach for valuation of investments of scheme of AIF, shall be construed as material change significantly influencing the decision of the investor to continue to be invested in the scheme of the AIF and the AIF shall adhere to process to be complied with in such cases as mentioned in SEBI circular No. CIR/IMD/DF/14/2014 dated June 19, 2014 and SEBI Circular No. CIR/IMD/DF/16/2014 dated July 18, 2014. 6.3. The manager shall disclose the following as part of changes in PPM to be submitted annually to SEBI and investors: 6.3.1. Details of changes in the valuation methodology and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce benchmarking agencies 9. To ensure timely and appropriate reporting of valuation of investment portfolio to performance benchmarking agencies, the following is specified: 9.1. Manager of AIF shall ensure that a specific timeframe for providing audited accounts by the investee company to the AIF is included as one of the terms in subscription agreement / investment agreement with the investee company, so as to enable AIFs to report valuation based on audited data of investee companies as on March 31 to performance benchmarking agencies within the specified timeline of six months. 9.2. Manager of AIF shall ensure that valuation based on audited data of investee company is reported to performance benchmarking agencies only ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
