Conditions for Investment in Alternative Investment Fund- (Insurance Regulatory and Development Authority) (05 Apr 2021)
MANU/IRDA/0040/2021
Insurance
Point 1.5 of Investment-Master Circular, 2017 specifies the conditions applicable for Insurers Investment in Alternative Investment Fund (AIF). The following shall replace the provisions applicable for Fund of Funds (FoF) mentioned in 1.5.3:
1.5.3 (a) No investment is permitted into AIFs which undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted under SEBI (Alternative Investment Funds) Regulations, 2012.
(b) Insurer shall invest only into Fund of Funds (FoF) which comply requirement of Section 27E of the Insurance Act, 1938.
(c) Insurer shall ensure compliance with Section 27E by a clause in the Fund Offer Documents executed by FoF to restrain such FoF investing into AIFs which invest in overseas companies/funds.
(d) No Insurer shall invest in an AIF, which in turn has exposure to a FoF, in which the Insurer has taken an exposure.
(e) The Insurer on a quarterly basis, obtain a certificate issued by the Concurrent Auditor on the compliance of the above conditions and file the same along with quarterly periodical returns.
Tags : INVESTMENT AIF CONDITIONS
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