The Securities and Exchange Board of India (SEBI) has issued Circular No. SEBI/HO/AFD/SEC-1/P/CIR/2023/0155 dated September 14, 2023, outlining regulatory reporting requirements for Alternative Investment Funds (AIFs). This article provides a detailed analysis of the key points covered in this circular.
Detailed Analysis
Regulatory Reporting Requirement: SEBI (AIF) Regulations, 2012, along with SEBI Master Circular for AIFs dated July 31, 2023, mandate that AIFs submit quarterly reports to SEBI. These reports are crucial for monitoring and regulating the activities of AIFs.
Revised Reporting Format: To standardize compliance standards and simplify reporting, SEBI collaborated with industry associations – Indian Venture and Alternate Capital Association (IVCA) and Equalifi. The result is a revised reporting format designed to streamline reporting for AIFs.
Availability of Reporting Format: The revised reporting format will be made available on the websites of IVCA and Equalifi within two working days of the circular’s issuance. This move aims to ensure transparency and accessibility for AIFs.
Assistance from Associations: IVCA and Equalifi will assist AIFs in understanding the reporting requirements and addressing any issues related to reporting. This support is essential to ensure accurate and timely reporting.
Submission Procedure: AIFs are required to submit their quarterly reports online through the SEBI Intermediary Portal (SI Portal). Reports must be submitted within 15 calendar days from the end of each quarter.
Periodic Review: The reporting format will undergo periodic reviews to align with the evolving AIF industry landscape. Any revisions will be made available on the association websites at least one month before the end of the quarter.
Conclusion
SEBI’s Circular No. SEBI/HO/AFD/SEC-1/P/CIR/2023/0155 sets out important regulatory reporting guidelines for AIFs. AIFs must adhere to the revised reporting format and submission deadlines as specified. This proactive approach by SEBI, in collaboration with industry associations, aims to enhance transparency, compliance, and overall regulation in the AIF sector.
For AIFs, staying informed about these reporting requirements and ensuring timely compliance is essential to maintain a strong foothold in the market and uphold investor interests.
*****
Securities and Exchange Board of India
Circular No. SEBI/HO/AFD/SEC-1/P/CIR/2023/0155 Dated: September 14, 2023
To
All Alternative Investment Funds (AIFs),
Indian Venture and Alternate Capital Association (IVCA),
Equalifi
Sir/ Madam,
Sub: Regulatory Reporting by AIFs
1. In terms of Regulation 28 of SEBI (AIF) Regulations, 2012 read with Clause 15.1 of SEBI Master Circular for AIFs dated July 31, 2023, AIFs shall submit quarterly reports to SEBI in the formats specified with respect to the activities carried on by the AIFs.
2. In order to enable the AIF industry to have uniform compliance standards, ease compliance reporting and for regulatory and developmental purposes, the existing quarterly reporting format has been reviewed in consultation with AIF Industry Associations – Indian Venture and Alternate Capital Association (IVCA) and Equalifi (hereinafter referred to as ‘association’) and the revised format has been prepared.
3. The said revised reporting format shall be hosted by the AIF associations on their website within 2 working days of issuance of this circular.
4. The association shall assist all AIFs in understanding the reporting requirements and in clarifying or resolving any issues which may arise in connection with reporting to ensure accurate and timely reporting.
5. The quarterly report shall be submitted by AIFs online on the SEBI Intermediary Portal (SI Portal) as per the aforesaid revised format. The report shall be submitted within 15 calendar days from the end of each quarter.
6. To keep pace with the fast-changing landscape of AIF industry and for policy and supervision purposes, the aforesaid reporting format shall be reviewed periodically by association / any AIF Standard Setting Forum in consultation with SEBI. In case of any revisions in the reporting format, revised format shall be made available on websites of association / the AIF Standard Setting Forum at least 1 month prior to end of the quarter.
Applicability:
7. The association shall engage with all AIFs to ensure that to begin with and to carry out a trial run, quarterly report for the June 2023 quarter is submitted in the revised format by October 15, 2023 on the SI Portal.
8. The report for the quarter ending September 30, 2023 shall be submitted in the revised format by November 15, 2023.
9. From quarter ending December 31, 2023 onwards, AIFs shall submit quarterly report in the revised format as mentioned at paragraph 5 above.
10. 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 interest of investors in securities and to promote the development of, and to regulate the securities market.
11. This Circular is available on SEBI website at sebi.gov.in under the categories “Legal Framework – Circulars” and “Info for-Alternative Investment Funds”.
Yours faithfully,
Rajesh Gujjar
General Manager
Tel no.: +91-22-26449232
rajeshg@sebi.gov.in
