SEBI (Alternative Investment Funds) (Amendment) Regulations, 2018

Jun 08, 2018 | by Avantis RegTech Legal Research Team

The Securities and Exchange Board of India (SEBI), on May 31, 2018, has notified the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2018.

The following key provisions of the SEBI (Alternative Investment Funds) Regulations, 2012 have been amended:

·         In the Regulations, the words ‘Companies Act, 1956’ have been substituted with ‘Companies Act, 2013’.

·         Regulation 19D which prescribesthe provisions for ‘Investment in angel funds’ is amended which now states that an angel fund should have a corpus of at least ‘five crore rupees’ in place of ‘ten crore rupees’ and an angel funds should accept, up to a maximum period of ‘five years’ in place of ‘three years’, an investment of not less than 25 lakh rupees from an angel investor;

·         A proviso has been inserted in the Regulation 19D which states that the provisions of the Companies Act, 2013 shall apply to the Angel Fund, if it is formed as a company.

·         In Regulation 19E which prescribes the provisions of ‘Schemes’, a new proviso has been inserted which states that the angel fund may launch schemes subject to filing of a term sheet with the SEBI, containing material information regarding the scheme, in the format and time period as may be specified by SEBI.

·         Regulation 19F which enumerates the provisions of ‘Investment by Angel Funds’ has been amended to state that Investment by an angel fund in any venture capital undertaking  should not be less than 25 lakh rupees and shall not exceed ‘ten crore rupees’ in place of ‘five crore rupees’.

The Amendment Regulations have come into force on the date of their publication in the Official Gazette that is May 31, 2018.

[No. SEBI/LAD-NRO/GN/2018/19]




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