The Securities and Exchange Board of India (SEBI) issued a Master Circular on ‘Alternative Investment Funds’ (AIFs) on May 7, 2024. This Master Circular incorporates the provisions of various circulars issued by SEBI under the SEBI (Alternative Investment Funds) Regulations, 2012, up until March 31, 2024, and supersedes the Master Circular for AIFs dated July 31, 2023.

In addition to the requirements under this Master Circular, AIFs must comply with other SEBI requirements for market intermediaries, for instance the ‘Levy of Goods & Services Tax (GST) on the fees payable to SEBI’, ‘Approach to securities market data access and terms of usage of data provided by data sources in Indian securities market’, ‘Digital mode of payment’, ‘Information regarding Grievance Redressal Mechanism’ and ‘Guidelines on Outsourcing of Activities by Intermediaries’, etc.

Any other directions or guidance issued by SEBI, specifically applicable to AIFs, will continue to remain in force in addition to the provisions of this Master Circular or any other law for the time being in force.

The trustee/sponsor of an AIF must ensure that the ‘Compliance Test Report’ prepared by the manager of the AIF includes compliance with the provisions of all chapters of this Master Circular.

To access the Master Circular, click here.