SEBI Changes reporting norms for Category III AIFs

Securities and Exchange Board of India

CIRCULAR

SEBI/HO/IMD/DF1/CIR/P/2017/110

September 29, 2017

To

All Registered Category III Alternative Investment Funds

All Custodian(s) of Securities

Dear Sir / Madam,

Sub: Change in reporting norms for Category III Alternative Investment Funds (“AIFs”) regarding investment in commodity derivatives market.

1. In terms of circular no. SEBI/HO/CDMRD/DMP/CIR/P/2017/61 dated June 21, 2017, the Category III Alternative Investment Funds (AIFs) are allowed to participate in the commodity derivatives market, subject to certain conditions which inter-alia include the following:

i. Category III AIFs shall invest not more than ten percent of the investable funds in one underlying commodity.

ii. Category III AIF shall be subject to the reporting requirements as may be specified by SEBI.

2. In view of the above, it is decided to revise the reporting formats for Category III AIFs so as to capture the information pertaining to investment in commodity derivatives as per enclosed Annexure. Accordingly, circular no.CIR/IMD/DF/10/2013 dated July 29, 2013 issued for operational, prudential and reporting requirements for AIFs stands modified.

3. All Category III AIFs are advised to submit the monthly/quarterly report in the revised format for the period ended September 30, 2017 onwards.

4. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

5. This circular is available on SEBI website at www.sebi.gov.in under the categories “Circulars” and “Info for – Alternative Investment Funds”.

Yours faithfully,

Naveen Sharma

Deputy General Manager

022-26449709

Email: [email protected]

Annexure:

i. Reporting format for Category III AIFs which do not undertake leverage:

Table 2- Cumulative net investments by the AIF as at the end of quarter (in Rs. Crore) (Scheme-wise)

Name of the scheme	In Unlisted equity shares/ equity linked instruments/L LP interest	In listed equity (excluding in listed/to  be listedon SME exchange)	In Debt/ securitis ed debt instrum ents	In units of other AIFs	In liquid funds	In listed/ to be listed securities on SME exchange	In comm odity deriva tives	Others	Total

Table 8- Maximum Investment made in a single underlying commodity (Scheme-wise

Name of the Scheme	Name of the underlying commodity	Amount invested (in Rs. Crore)	Amount of investment as a % of total investible funds

ii.Reporting format for Category III AIFs which undertake leverage:

Table 2- Exposure by the AIF as at the end of month (in Rs. Crore) (Scheme-wise)

Name   of the sche me

In listed equity and ETFs

Long Futures

Short futures

Long calls

Short calls

Equi ty

Comm odity

Other s*

Equi ty

Comm odity

Other s*

Equity

Com modit y

Oth ers*

Equit y

Comm odity

Other s*

–

Long puts			Short puts			Cash & cash equivalents	Others*	Gross Total (Sum of all exposures)
Equity	Commodity	Others*	Equity	Commodity	Others*

* Specific details to be provided.

Table 8- Maximum Investment made in a single underlying commodity (Scheme-wise

Name of the Scheme	Name of the underlying commodity	Amount invested (in Rs. Crore)	Amount of investment as a % of total investible funds