In a significant regulatory update, SEBI has announced an extension for alternative investment funds (AIFs) to dematerialise their holdings. This decision, outlined in a recent circular, mandates that any investments made after July 1 will need to be held in dematerialised form.
Investments made before the stipulated date are given till October 31 to transition to this format, unless specific exemptions apply. These exemptions include schemes whose tenure ends on or before October 31, or those already extended as of February 14.
The compliance process will be overseen through a ‘Compliance Test Report’ prepared by the manager, ensuring adherence to the updated regulations. SEBI’s move is aimed at enhancing transparency and efficiency in the financial markets.
(With inputs from agencies.)