SEBI Update – Flexibility to Alternative Investment Funds (AIFs) and their investors to deal with unliquidated investments of their schemes

Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations 2024 (“AIF Regulations Amendment”), have been notified , inter alia, to provide additional flexibility to AIFs and their investors to deal with unliquidated investments of their schemes.

The following has been stated 
With respect to dissolution period it has been stated 
Before seeking the requisite investor consent, the AIF / manager shall arrange a bid for a minimum of 25% of the value of its unliquidated investments.

Mandatory in-specie distribution of unliquidated investments it has been stated as 

During the Liquidation Period, if the AIF fails to obtain requisite investor consent for entering into Dissolution Period or in-specie distribution, then the unliquidated investments shall be mandatorily distributed to investors in-specie, without requirement of obtaining consent of 75% of investors by value of their investment in the scheme of the AIF.

Link – https://www.sebi.gov.in/legal/circulars/apr-2024/flexibility-to-alternative-investment-funds-aifs-and-their-investors-to-deal-with-unliquidated-investments-of-their-schemes_83065.html