At current, AIFs have been designated as certified institutional consumers(QIB) and might avail sure advantages underneath Sebi guidelines.
On Tuesday, Sebi mentioned AIFs mustn’t facilitate traders who’re ineligible for QIB standing on their very own from availing the advantages.
“For each scheme of AIFs having an investor, or traders belonging to the identical group, who contribute 50% or extra to the corpus of the scheme, essential due diligence… shall be carried out previous to availing advantages accessible to QIBs underneath ICDR Laws and different SEBI Laws,” it mentioned in a round. Likewise, AIFs are additionally notified as certified consumers and are eligible to subscribe to safety receipts issued by an asset reconstruction firm. Sebi mentioned AIFs must also keep away from facilitating the ever- greening of confused loans or belongings for RBI regulated entities and adjust to RBI’s norms on revenue recognition, asset classification, provisioning and restructuring of confused loans.
