The final guidelines by the Securities and Exchange Board of India (Sebi) will ensure that the "excuse" and "exclude" provisions coexist with the pro-rata distribution mandate for alternative investment funds (AIFs), sources said.
The mandate, which is aimed at ensuring that benefits are distributed in proportion to the commitments made by an investor in the AIF scheme, had triggered concerns about the applicability of these provisions.
While the "excuse" provision allows an investor to opt out of a deal, "exclude" enables the fund to prevent an investor from participating in a particular investment opportunity if that leads to violation of applicable laws.
AIFs are pooled investment vehicles for affluent investors with high entry barriers. These investments are drawn and deployed in tranches based on the investment opportunity. Hence, the committed amount is not drawn at one go.
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Denne historien er fra October 11, 2024-utgaven av Business Standard.
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A life that lives beyond
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Love-all, RAFA
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