- AIFs priority distribution model draws SEBI’s attention – Regulator temporarily restricts such AIFs from accepting fresh commitment or making new investments
AIFS PRIORITY DISTRIBUTION MODEL DRAWS SEBI’S ATTENTION – REGULATOR TEMPORARILY RESTRICTS SUCH AIFS FROM ACCEPTING FRESH COMMITMENT OR MAKING NEW INVESTMENTS
In a major move, SEBI has decided to temporarily restrict Alternate Investment Funds (AIFs) schemes which have adopted priority distribution model among investors from accepting any fresh commitment or making investment in a new investee company, till SEBI comes up with a view in this regard.
The aforesaid view was taken by SEBI vide SEBI circular dated November 23, 2022 (available here) (SEBI Circular) and has been discussed below in brief:
The SEBI Circular has come into force with immediate effect.
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