SEBI Update – Guidelines for AIFs with respect to holding their investments in dematerialised form and appointment of custodian

Holding investments of AIFs in dematerialised form

 In terms of Regulation 15(1)(i) of AIF Regulations, AIFs shall hold their investments in dematerialised form, subject to such conditions as may be specified by the Board from time to time. The said requirement does not apply, inter-alia, to such investments by AIFs and such schemes of AIFs as may be specified by the Board from time to time.

Appointment of custodian for AIFs 

In terms of Regulation 20(11) of AIF Regulations, the Sponsor or Manager of the AIF shall appoint a custodian registered with the Board for the safekeeping of the securities of the AIF, in the manner as may be specified by the Board from time to time.

Reporting of investments of AIFs under custody

 In terms of Regulation 20(11) of AIF Regulations, the custodian shall report or disclose such information regarding investments of the AIF in such manner as may be specified by the Board from time to time.

Link – https://www.sebi.gov.in/legal/circulars/jan-2024/guidelines-for-aifs-with-respect-to-holding-their-investments-in-dematerialised-form-and-appointment-of-custodian_80614.html