SEBI amends AIF Regulations to (a) permit creation of encumbrances by Category-I and Category-II AIFs in respect of their investments, (b) prescribe conditions for Category-I and Category-II AIFs to borrow and (c) provide for extension of tenure of LVFs
Category-I and Category-II Alternate Investment Funds (AIFs) are not permitted to undertake any leverage (i.e. directly or indirectly borrow funds) other than to meet temporary funding requirements and day-to-day operational requirements for not more than 30 days, on not more than four occasions in a year and not more than 10% of investable funds. On…