These Regulations may be called the Securities and Exchange Board of India (Alternative Investment Funds) (Fourth Amendment) Regulations, 2024. In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012,

I. In regulation 3, in sub-regulation (4), in clause (b), the words “to meet day-to-day operational requirements and” shall be omitted.

II. In regulation 13, in sub-regulation (5), the proviso shall be substituted with the following, namely,– “Provided that a large value fund for accredited investors may be permitted to extend its tenure up to five years subject to the approval of two - thirds of the unit holders by value of their investment in the large value fund for accredited investors: Provided further that the extension in tenure of any existing scheme of a large value fund for accredited investors shall be subject to such conditions as may be specified by the Board from time to time.”

III. In regulation 16, in sub-regulation (1), clause (c) shall be substituted with the following, namely,– “ (c) Category I Alternative Investment Funds shall not borrow funds directly or indirectly or engage in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day-to-day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by the Board from time to time: Provided that Category I Alternative Investment Funds may create encumbrance on equity of investee company, which is in the business of development, operation or management of projects in any of the infrastructure sub - sectors listed in the Harmonised Master List of Infrastructure issued by the Central Government, only for the purpose of borrowing by such investee company and subject to such conditions as may be specified by the Board from time to time.”  

IV. In regulation 17, clause (c) shall be substituted with the following, namely , – “ (c) Category II Alternative Investment Funds shall not borrow funds directly or indirectly or engage in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day - to - day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by the Board from time to time: Provided that Category II Alternative Investment Funds may create encumbrance on equity of investee company, which is in the business of development, operation or management of projects in any of the infrastructure sub - sectors listed in the Harmonised Master List of Infrastructure issued by the Central Government, only for the purpose of borrowing by such investee company and subject to such conditions as may be specified by the Board from time to time.”

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