Delhi High Court: Assets From Illegal Cricket Betting are Proceeds of Crime Attachable by ED  ||  Delhi HC: Extension to Issue SCN U/S 110 of The Customs Act Must be Granted Before Six Months Expire  ||  Delhi HC: Statements to Customs under Section 108 During Goods Seizure Aren't Admissible As Evidence  ||  Delhi HC: Oral Waiver of a Show-Cause Notice is Invalid And Continued Detention of Goods is Unlawful  ||  Supreme Court: Letter of Intent is a 'Promise in Embryo', Rights Arise Only After Conditions Met  ||  SC Auction Sale under Order XXI Rule 90 CPC Cannot Be Challenged on Pre-Proclamation Grounds  ||  NCLT Kochi: CoC May Invite Fresh Bids, Regulations Only Restrict Alteration of Existing Bids  ||  Chhattisgarh HC: Father Must Provide Maintenance and Marriage Expenses to Unmarried Adult Daughter  ||  Delhi HC Rules That ‘Hermès’ and the 3D Shape of its ‘Birkin’ Bag are Well-Known Trademarks in India  ||  Kerala HC: Arrest is Illegal if Accused isn’t Produced in 24 Hours and Rearrest From Prison is Barred    

Notification regarding investments in Alternative Investment Funds- (Reserve Bank of India) (27 Mar 2024)

MANU/RMIC/0039/2024

Banking

1. This is with reference to the circular DOR.STR.REC.58/21.04.048/2023-24 dated December 19, 2023 ('Circular') on the captioned subject, in terms of which instructions were issued to address certain regulatory concerns relating to investment by regulated entities (REs) in the AIFs.

2. With a view to ensuring uniformity in implementation among the REs, and to address the concerns flagged in various representations received from stakeholders, it is advised as under:

(i) Downstream investments referred to in paragraph 2 (i) of the Circular shall exclude investments in equity shares of the debtor company of the RE, but shall include all other investments, including investment in hybrid instruments.

(ii) Provisioning in terms of paragraph 2(iii) of the Circular shall be required only to the extent of investment by the RE in the AIF scheme which is further invested by the AIF in the debtor company, and not on the entire investment of the RE in the AIF scheme.

(iii) Paragraph 3 of the Circular shall only be applicable in cases where the AIF does not have any downstream investment in a debtor company of the RE. If the RE has investment in subordinated units of an AIF scheme, which also has downstream exposure to the debtor company, then the RE shall be required to comply with paragraph 2 of the Circular.

(iv) Further with regard to paragraph 3 of the Circular:

• proposed deduction from capital shall take place equally from both Tier-1 and Tier-2 capital.

• reference to investment in subordinated units of AIF Scheme includes all forms of subordinated exposures, including investment in the nature of sponsor units.

(v) Investments by REs in AIFs through intermediaries such as fund of funds or mutual funds are not included in the scope of the Circular.

3. The above instructions have been issued in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 read with Section 56 of the Act ibid; Chapter IIIB of the Reserve Bank of India Act, 1934 and Sections 30A, 32 and 33 of the National Housing Bank Act, 1987.

Tags : INVESTMENTS   AIFS   INSTRUCTIONS  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved