On May 13, 2024, the Securities and Exchange Board of India (SEBI) mandated that the investment team of the manager of an Alternative Investment Fund (AIF) must include at least one key personnel with National Institute of Securities Market (NISM) Series-XIX-C certification. This requirement, effective from May 10, 2024, is a criterion for AIF registration.
- To give this effect, SEBI has amended its Certification of Associated Persons in the Securities Markets Regulations, 2007.
- This information by SEBI is provided in exercise of its powers conferred under Section 11(1) of SEBI Act, 1992 to protect the interests of investors and to promote the development of the securities market.
Key Points:
i.The certification requirement aims to ensure higher proficiency in managing AIFs.
ii.Compliance deadline is May 9, 2025 for existing schemes of AIFs, and for schemes of AIFs whose application for launch of scheme pending with SEBI, as on May 10, 2024.
iii.In April 2024, SEBI allowed direct submission of certain changes in the private placement memorandum of AIFs, bypassing the need for a merchant banker, to ease business operations.
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SEBI relaxes KYC norms to Simplify Risk Management Framework
SEBI has also relaxed the provisions of Risk Management Framework at KRAs (KYC Registration Agencies) norms, where KYC stands for Know Your Customer (KYC).
- This decision has been taken to simplify the risk management framework based on stakeholder feedback and ease client transactions.
- This information by SEBI is provided in exercise of its powers conferred under Section 11(1) of SEBI Act, 1992, and Regulation 17 of the SEBI KRA Regulations, 2011.
KYC norms SEBI relaxed for Risk Management Framework:
i.KRAs must verify the client’s Permanent Account Number (PAN), name, and address within two days of receiving KYC records.
ii.Records verified with official databases (Income Tax Department, Aadhaar XML, Digilocker, M-Aadhaar) are considered ‘validated records.’
iii.Exchanges, depositories, and intermediaries must complete necessary technical changes by May 31, 2024.
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Recent Related News:
i.SEBI introduces framework for administration and supervision of Research Analysts and Investment Advisers as stock exchange will be recognized as RAASB (Research Analyst Administration and Supervisory Body) and IAASB (Investment Adviser Administration and Supervisory Body) for administration and supervision of Research Analysts (RAs) and Investment Advisers (IAs) respectively.
ii.Ahmedabad (Gujarat)-based real estate developer Shivalik Group has received regulatory approval from the Securities and Exchange Board of India (SEBI) for its inaugural fund- Shivalik Investment Fund as a Category II Alternative Investment Fund (AIF).
About Securities Exchange Board of India (SEBI):
Chairperson– Madhabi Puri Buch
Headquarters– Mumbai, Maharashtra
Establishment–1992
