Markets regulator Sebi on Monday mentioned Class III Different Funding Funds (AIFs) can go for calculating their funding focus norm based mostly on investable funds topic to sure situations.
The watchdog has issued a round on calculation of funding focus norm for Class III AIFs. Varied funds like hedge funds are registered on this class and people funds make use of various or advanced buying and selling methods.
In a round, Sebi mentioned all Class III AIFs ought to disclose the idea for calculation of funding focus norm within the placement memorandum of their schemes.
Additionally, they need to not change the idea for calculating funding focus norm in the course of the time period of the scheme.
“Present Class III AIFs could go for calculating funding focus norm based mostly on investable funds with the approval of their trustees or board of administrators or designated companions, because the case could also be, and inform the identical to their traders inside 30 days from the date of the issuance of this round,” Sebi mentioned.
Earlier this month, the regulator amended laws to supply flexibility to Class III AIFs to calculate funding focus norm based mostly both on investable funds or Web Asset Worth (NAV) of the scheme whereas investing in listed fairness of an investee firm.