Regulatory update: SEBI – Overseas Investment by Alternate Investment Funds (AIFs)/ Venture Capital Funds (VCFs)

SEBI vide circular no. SEBI/HO/IMD/DF1/CIR/2018/103/2018 dated 3 July 2018 with the consultation of the Reserve Bank of India (RBI) has decided to enhance the limit from USD 500 (five hundred) million to USD 750 (Seven Hundred Fifty) million, in terms of the overseas investment by AIFs and VCFs. Further to monitor the utilization of the overseas investment limits, it has been notified that the AIFs/VCFs shall mandatorily disclose the following:

  • AIFs/VCFs shall report the utilization of the overseas investment limit within 5 (five) working days of such utilization on SEBI’s immediate portal at:

https://siportal.sebi.gov.in

  • The AIFs/VCFs shall also report the following on the immediate portal:
  1. If the AIF/ VCF has not utilised the overseas limit granted to them within a period of 6 (six) months from the date of approval by SEBI (“Validity Period”), the same shall be reported within 2 (two) working days after the expiry of the Validity Period;
  2. If the AIF/VCF has not utilized a part of the overseas limit within the Validity Period, then the same shall be reported within 2 (two) working days after the Validity Period;
  • If the AIF/ VCF wishes to surrender the overseas limit at any point of time within the Validity Period, then the same shall be reported within 2 (two) working days from the date of decision to surrender the limit.
  • The other requirements, and terms as specified vide SEBI circulars no. SEBI/VCF/Cir no. 1/ 98645 /2007 dated August 9, 2007 and CIR/IMD/DF/7/2015 dated October 01, 2015, shall remain unchanged.

Source:https://www.sebi.gov.in/legal/circulars/jul-2018/overseas-investment-by-alternative-investment-funds-aifs-venture-capital-funds-vcfs-_39424.html

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