Securities and Exchange Board of India (“SEBI”) vide notification no. SEBI/LAD-NRO/GN/2019/16 has issued the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2019 dated May 10, 2019 (available here). The changes have been summarised hereunder:
All Cat III AIFs were required to appoint custodians as per the existing regulations. The custodian appointed by Cat III AIFs would now be required to keep custody of securities as well as goods received in delivery against physical settlement of commodity derivatives.
The term “goods” has been defined as the goods notified by the Central Government under the provisions of Securities Contracts (Regulation) Act, 1956 that form the underlying of any commodity derivative.