New Delhi: Market regulator Sebi on Thursday changed the framework for valuation of investment portfolio of Alternative Investment Funds (AIFs), under which valuation of securities other than unlisted, non-traded or thinly traded securities will now be done on a mutual basis. Will go. Fund rules.
This comes after the Securities and Exchange Board of India (SEBI) received feedback from the AIF industry on the challenges of the valuation framework and made changes based on public comments and internal discussions.
Amending the rules, the regulator said, "valuation of securities other than unlisted securities and listed securities, which are non-traded and thinly traded, for which valuation norms are prescribed under SEBI (Mutual Fund) Regulations, This will be done as per the norms prescribed under MF rules”.
Additionally, valuation of thinly traded and non-traded securities will be harmonized across SEBI-regulated entities by March 31, 2025.
Also, the regulator said that change in valuation methods to comply with these rules will not be considered a “material change” but must be disclosed to investors.
With regard to independent valuers, SEBI said the framework for independent valuers of AIF portfolios now requires the valuer to be part of a registered entity such as ICAI, ICSI or CFA Charter.
Additionally, AIFs will now have seven months to report valuations based on audited data of investee companies, compared to six months earlier.
AIF trustees or sponsors are required to ensure that managers include compliance with these rules in their compliance reports. SEBI said, these changes will come into effect with immediate effect.
This comes after the Securities and Exchange Board of India (SEBI) received feedback from the AIF industry on the challenges of the valuation framework and made changes based on public comments and internal discussions.
Amending the rules, the regulator said, "valuation of securities other than unlisted securities and listed securities, which are non-traded and thinly traded, for which valuation norms are prescribed under SEBI (Mutual Fund) Regulations, This will be done as per the norms prescribed under MF rules”.
Additionally, valuation of thinly traded and non-traded securities will be harmonized across SEBI-regulated entities by March 31, 2025.
Also, the regulator said that change in valuation methods to comply with these rules will not be considered a “material change” but must be disclosed to investors.
With regard to independent valuers, SEBI said the framework for independent valuers of AIF portfolios now requires the valuer to be part of a registered entity such as ICAI, ICSI or CFA Charter.
Additionally, AIFs will now have seven months to report valuations based on audited data of investee companies, compared to six months earlier.
AIF trustees or sponsors are required to ensure that managers include compliance with these rules in their compliance reports. SEBI said, these changes will come into effect with immediate effect.
