New Delhi, Capital markets regulator SEBI on Thursday proposed relaxation in the framework related to valuation of investment portfolio or Alternative Investment Fund (AIF).
Sebi said these relaxations include changes in the calculation of valuation of investment portfolio of AIFs, changes in valuation methodology with respect to 'material changes', eligibility criteria of independent valuers to be appointed by AIFs and performance benchmarking agencies for valuation of investment portfolios by AIFs. Relate to reporting deadlines. In your consultation letter.
The Securities and Exchange Board of India (SEBI) has invited comments from the public on the proposals till June 13.
In its consultation paper, SEBI suggested that valuation of unlisted securities, non-traded, thinly traded securities and securities below investment grade valuation norms under mutual fund (MF) regulations should not be applicable and valuation of these securities should be done in the international market. Should be done as per. Private Equity and Venture Capital Valuation Guidelines.For valuation of securities other than unlisted securities, it is proposed that the valuation criteria should be as per the norms prescribed under the MF Rules.
It further states that the valuation norms under MF rules cannot be applied to private instruments held by AIFs, as the mutual fund valuation process is a rule based framework that regulates the processes around pricing for investments in open-ended vehicles. Follows a series of.
AIFs mostly hold private investments, where one needs to present a fundamental valuation based on cash flows related to the underwriting thesis, which mutual fund guidelines do not cover.
Further, SEBI has suggested that change in valuation methodology or approach should not be construed as a 'material change' which could significantly affect the investor's decision to continue investing in the scheme of the AIF. As a result, AIFs should not be required to follow the process of providing an exit option to dissenting investors.On the eligibility criteria for independent valuer for a partnership entity or company, SEBI proposed that such entity or company should be a registered valuer entity registered with the Insolvency and Bankruptcy Board of India (IBBI) and be an authorized person of such registered valuer entity. The person who evaluates the investment portfolio of an AIF must have membership of ICAI or ICSI.
“The AIF shall, after audit of the books of accounts of the AIF…o AIF Regulations, provide audited data on cash flows and valuation of their scheme-wise investments to the performance benchmarking agencies within 7 months from March 31, i.e. by October. SEBI suggested, “Every year 31."
Sebi said these relaxations include changes in the calculation of valuation of investment portfolio of AIFs, changes in valuation methodology with respect to 'material changes', eligibility criteria of independent valuers to be appointed by AIFs and performance benchmarking agencies for valuation of investment portfolios by AIFs. Relate to reporting deadlines. In your consultation letter.
The Securities and Exchange Board of India (SEBI) has invited comments from the public on the proposals till June 13.
In its consultation paper, SEBI suggested that valuation of unlisted securities, non-traded, thinly traded securities and securities below investment grade valuation norms under mutual fund (MF) regulations should not be applicable and valuation of these securities should be done in the international market. Should be done as per. Private Equity and Venture Capital Valuation Guidelines.For valuation of securities other than unlisted securities, it is proposed that the valuation criteria should be as per the norms prescribed under the MF Rules.
It further states that the valuation norms under MF rules cannot be applied to private instruments held by AIFs, as the mutual fund valuation process is a rule based framework that regulates the processes around pricing for investments in open-ended vehicles. Follows a series of.
AIFs mostly hold private investments, where one needs to present a fundamental valuation based on cash flows related to the underwriting thesis, which mutual fund guidelines do not cover.
Further, SEBI has suggested that change in valuation methodology or approach should not be construed as a 'material change' which could significantly affect the investor's decision to continue investing in the scheme of the AIF. As a result, AIFs should not be required to follow the process of providing an exit option to dissenting investors.On the eligibility criteria for independent valuer for a partnership entity or company, SEBI proposed that such entity or company should be a registered valuer entity registered with the Insolvency and Bankruptcy Board of India (IBBI) and be an authorized person of such registered valuer entity. The person who evaluates the investment portfolio of an AIF must have membership of ICAI or ICSI.
“The AIF shall, after audit of the books of accounts of the AIF…o AIF Regulations, provide audited data on cash flows and valuation of their scheme-wise investments to the performance benchmarking agencies within 7 months from March 31, i.e. by October. SEBI suggested, “Every year 31."
