Theranautilus Secures $1.2 Mn in Seed...
19 Nov 2024
On August 8, 2024, the Securities and Exchange Board of India (SEBI) announced new regulations regarding the tenure extension of Large Value Funds for Accredited Investors (LVFs).
Under the amended rules, these funds can now extend their tenure by a maximum of five years, contingent upon the approval of at least two-thirds of the unit holders by value of their investments.
This regulatory change aims to provide greater clarity and structure for investors in LVFs, which are defined as alternative investment funds where each investor contributes a minimum of ₹70 crore. Previously, LVFs had more flexibility in extending their tenures as outlined in their private placement memorandums (PPMs).
Now, existing schemes that allow for longer extensions must amend their PPMs to comply with the new five-year limit within three months of the SEBI circular.
Additionally, SEBI has introduced provisions allowing Category I and II AIFs to borrow funds for up to 30 days to manage temporary shortfalls, enhancing operational flexibility while maintaining restrictions on leverage for investment purposes.
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