THE SECURITIES AND Exchange Board of India (Sebi) plans to define outer limits for the life of close-ended alternative investment funds (AIFs). The regulator is also in favour of putting a cap on the extensions that can be taken by large value funds (LVFs), which pool in money from accredited investors.
The regulator may propose fixing a maximum tenure of 30 years for category I funds, 20 years for category II funds and 12 years for category III close-ended funds, people in the know said. The fixed period will include fund extensions and may be applicable for LVFs too.
"Today, it is theoretically possible to file an application for a fund with a tenure of 50 years, nothing in the regulations prevent you from doing that. Sebi wants to formally put in norms that cap the tenure for different categories of AIFS so that no one can manufacture a product that exceeds these periods," an industry official said.
The average tenure of most AIFS at present is about 10 years with an option to extend them by up to two years, which is why market watchers believe that the proposed outer limits may not pose any challenge to most of the funds being launched in the country today.
Diese Geschichte stammt aus der August 01, 2022-Ausgabe von Financial Express Mumbai.
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