Synopsis :- SEBI, vide its Circular dated 24th June, 2022 issued guidelines for Large Value funds (LVFs – are alternative investment funds (AIFs) that invest in stocks of big US companies that are less expensive or growing more slowly than other large-cap stocks.) for accredited investors pertaining to filing of LVF Schemes and extension of tenure beyond two years.
Filing of LVF Schemes :-
The Circular said that, While filing placement memorandum for LVF schemes with SEBI, a duly signed and stamped undertaking by CEO of the Manager to the AIF (or person holding equivalent role or position depending on the legal structure of Manager) and Compliance Officer of Manager to the AIF shall be submitted in the format as mentioned at Annexure A of this Circular.
In schemes already filed with SEBI, similar duly signed and stamped undertaking by CEO of the Manager to the AIF (or person holding equivalent role or position depending on the legal structure of Manager) and Compliance Officer of Manager to the AIF shall be submitted to SEBI on or before 31st July, 2022.
Extension of Tenure beyond two years :-
Further, in regards to extension of tenure beyond two years, Circular said that it is permitted under Regulations subject to the terms of the contribution agreement where such conditions should be specified by the board from time to time.
Other than that, he approval from the trustee/ board must be taken at least one month before expiration of the fund tenure or the extended tenure.
Requirement of Compliance Officers for Managers of all AIFs :-
SEBI further said that, all AIFs shall ensure that Manager to AIF designates an employee or director as Compliance Officer who shall be a person other than CEO of the Manager (or such equivalent role or position depending on the legal structure of Manager). The compliance officer shall be responsible for monitoring compliance with the provisions of the SEBI Act, AIF Regulations and circulars issued thereunder.
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