Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

New Delhi, Capital markets regulator Sebi on Monday proposed to provide flexibility to Alternative Investment Funds (AIFs), <keyword id="20198292" type="General" weightage="20" keywordseo="venture-capital-funds" source="keywords">Venture Capital Funds</keyword> (VCFs) and their investors to deal with unliquidated investments of their schemes beyond expiry of tenure. In its consultation paper, the regulator suggested that instead of launching a new liquidation scheme by AIFs, the same scheme itself can be allowed to continue with the unliquidated investments beyond their tenure for a certain period or dissolution period for fully liquidating their unliquidated investments. Additionally, the regulator proposed extending flexibility of the dissolution process to venture capital funds through migration to the <keyword id="19903848" type="General" weightage="20" keywordseo="aif" source="keywords">AIF</keyword> regime. At present, the option to launch liquidation scheme is available only to those schemes of AIFs which are under 'Liquidation Period'-- the period of one year following the expiry of tenure of the scheme for fully liquidating the scheme and not available to VCFs, irrespective of whether their tenure has expired or not. The Securities and Exchange Board of India (Sebi) has sought public comments till February 2 on the proposal. The proposal came after Sebi received representations from participants in the AIF industry highlighting certain tax related issues. They also highlighted that setting up a liquidation scheme and winding up the original AIF scheme is a process involving time, cost, and efforts, which directly or indirectly, would ultimately be paid by investors. In the consultation paper, the regulator suggested that during the liquidation period of an AIF scheme, if the AIF decides to opt for dissolution period, then AIF should obtain positive consent of 75 per cent of investors by value of their investment in the scheme. After obtaining the consent, the AIF should arrange bids for a minimum of 25 per cent of the value of the unliquidated investments. The bids should be arranged for units representing consolidated value of all unliquidated investments of the scheme's investment portfolio. Sebi suggested that investor approval and bid should be obtained by the AIF before the expiry of the Liquidation Period of the scheme. "Liquidation schemes that have already been launched by AIFs shall be grand-fathered," Sebi said. The regulator also suggested one-time flexibility to AIF schemes, whose Liquidation Period has expired or would be expiring within one month from the date of notification in this regard, to deal with unliquidated investment. Also, it has recommended extending flexibility of the dissolution process to venture capital funds through migration to the AIF regime. It further suggested that such migration should be smooth and cost effective. Under the <keyword id="20198293" type="General" weightage="20" keywordseo="vcf-regulations" source="keywords">VCF Regulations</keyword>, VCFs are required to liquidate their investments within three months from the expiry of their tenure, whereas AIF Regulations provide AIFs a Liquidation Period of 12 months for the said purpose. There is no provision in <keyword id="20198294" type="General" weightage="20" keywordseo="vcf" source="keywords">VCF</keyword> Regulations for extension of tenure of VCF scheme. Therefore, any VCF operating beyond their tenure specified in the Private <keyword id="20198291" type="General" weightage="20" keywordseo="placement-memorandum" source="keywords">Placement Memorandum</keyword> (PPM) is in violation of the VCF rules. Accordingly, Sebi suggested a new framework to facilitate VCFs to migrate to AIF Regulations, so that the proposed flexibility of Liquidation Period and the flexibility of dealing with unliquidated investments by opting for dissolution period / process, can be availed by VCFs. Under the proposed regulatory framework for migration of VCFs to AIF Regulations, a sub-category should be created under Category I - VCFs called Migrated VCFs. Such VCFs can migrate themselves within 6 months of the date of Sebi's notification in this regard. Sebi suggested that certain flexibilities under VCF rules should continue to be availed by migrated VCFs and accordingly the migrated VCFs should be exempted from the requirements of minimum investment requirement in AIF, minimum corpus size, maximum number of investors in a scheme, manner of calculation of tenure and audit of terms of PPM. Moreover, certain benefits of AIF Regulations that are not available under VCF rule should be extended to migrated VCFs.

Sebi mulls flexibility for AIF, VCFs to deal with unliquidated investments beyond tenure expiry

To bring transparency in expenses and curb mis-selling, markets regulator SEBI has asked alternative investment funds (<keyword id="1006423" type="General" weightage="100" keywordseo="aifs" source="Orion">AIFs</keyword>) to provide an option of "direct plan" for investors and introduced a trail model for distribution commission. In addition, the regulator came out with guidelines with respect to excluding an investor from an investment in <keyword id="161906" type="General" weightage="80" keywordseo="aif" source="Orion">AIF</keyword>. This came after the regulator observed inconsistency and lack of adequate disclosure in Private <keyword id="17098646" type="General" weightage="50" keywordseo="placement-memorandum" source="Orion">Placement Memorandum</keyword> (PPM) with respect to certain industry practices. The new rules are aimed at providing flexibility to investors for investing in AIFs, bringing transparency in expenses and curbing mis-selling, the <keyword id="6355630" type="General" weightage="50" keywordseo="securities-and-exchange-board-of-india" source="Orion">Securities and Exchange Board of India</keyword> (SEBI) said in two separate circulars. The framework pertaining to the direct plan will come into force from May 1, while those related to excluding an investor from an AIF investment will become effective immediately. Directing AIFs, SEBI said,"schemes of AIFs shall have an option of 'Direct Plan' for investors" and through such direct plans, investors will have the opportunity to participate in an AIF without having to pay any distribution fee or placement fee. AIFs will have to ensure that investors who approach the AIF through a registered intermediary, which is separately charging the investor any fee such as an advisory fee or portfolio management fee, are on-boarded through a direct plan only. Introducing a trail model for distribution commission, SEBI said that category III AIFs would charge distribution fee from investors only on an equal trail basis. It means no upfront distribution fee would be charged by such AIFs directly or indirectly from their investors. Further, any distribution charge paid would be only from the management fee received by the managers of such category III AIFs. For other two categories, AIFs may pay up to one-third of the total distribution fee to the distributors on upfront basis, and the remaining distribution fee would be paid to the distributors on equal trail basis over the tenure of the fund. Also, SEBI asked AIFs to disclose distribution fees to the investors at the time of on-boarding. The capital markets regulator has already barred upfront commissions for portfolio management services and mutual funds. Upfront commission is a one-time payment made by a fund to a distributor on selling a scheme to an investor. Trail commission, on the other hand, is a recurring fee paid to a distributor until the investment is withdrawn. With regard to excusing or excluding an investor, SEBI said that an AIF may excuse its investor from participating in a particular investment in certain circumstances. Those circumstances include if an investor, based on the opinion of a legal professional, confirms that its participation in the investment opportunity would be in violation of rule; or if the investor, as part of an agreement signed with the AIF, had disclosed to the manager that its participation in such investment opportunity would be in contravention to the internal policy of the investor. Further, the manager will have to ensure that terms of such agreement with the investor include reporting of any change in the disclosed internal policy, to the AIF, within 15 days of such change. Moreover, an AIF may exclude an investor from participating in a particular investment opportunity, if the manager of the AIF is satisfied that the participation of such investor in the investment opportunity would lead to the scheme of the AIF being in violation of rule or would result in material adverse effect on the scheme of the AIF. If the investor of an AIF is also an AIF or any other investment vehicle, such investor may be partially excluded from participation in an investment opportunity, to the extent of the contribution of the investment vehicle's underlying investors who are to be excused from such investment opportunity. The manager will have to record the rationale for such exclusions along with the supporting documents. In February 2020, the regulator introduced a template for PPM for AIFs, in order to ascertain that a certain minimum level of information in a simple and comparable format is disclosed to investors. The PPM template provides for disclosure with respect to direct plan for investors, and constituents of fees that may be charged by the AIF, including distribution fee. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/space/news/a-giant-asteroid-the-size-of-qutub-minar-to-pass-dangerously-close-to-earth-at-30-times-the-speed-of-sound/articleshow/99406843.cms">Just Look Up: Giant asteroid the size of Qutub Minar to pass dangerously close to Earth</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/nse-indices-launches-indias-first-ever-reits-and-invits-index/articleshow/99407069.cms">NSE Indices launches India's first-ever REITs and InvITs index</a>

SEBI asks AIFs to provide "direct plan" option to investors; introduces trail model for distribution commission

<ul><li>The Indian stock markets could open on a positive note on September 21, after experiencing a bear hug on the previous day. </li><li>Trends on SGX <keyword id="6354813" type="General" weightage="20" keywordseo="nifty" source="Orion">Nifty</keyword> showed an increase of 47 points, suggesting that Nifty could open in the green amid negative cues in other Asian markets. </li><li>SBI Cards, Adani Ports and HCL Tech could be among the top stocks to watch out for on September 21. </li></ul><cmsannotation type="cmsannotation" annotationid="SBI Card &amp; Payment Services" comment="subhead" text="SBI Card &amp; Payment Services">SBI Card &amp; Payment Services</cmsannotation> US-based private equity firm The Carlyle Group is planning to sell a 3.4 percent stake in the company, valued at ₹3,267 crore, in the price range of ₹1,021 to ₹1,072 per share. <cmsannotation type="cmsannotation" annotationid="Adani Ports &amp; SEZ" comment="subhead" text="Adani Ports &amp; SEZ">Adani Ports &amp; SEZ</cmsannotation> Received approval from the Competition Commission of India to acquire a 10.4 percent stake in the Gangavaram Port project in Andhra Pradesh. <cmsannotation type="cmsannotation" annotationid="HCL Tech" comment="subhead" text="HCL Tech">HCL Tech</cmsannotation> Bagged a digital transformation order from US-based MKS Instruments Inc., for five years. <cmsannotation type="cmsannotation" annotationid="IPO Watch" comment="subhead" text="IPO Watch">IPO Watch</cmsannotation> Paras Defence and Space Technologies IPO worth ₹171 crore to kick off today, with a price band of ₹165-175 per share. <cmsannotation type="cmsannotation" annotationid="Cadila Healthcare" comment="subhead" text="Cadila Healthcare">Cadila Healthcare</cmsannotation> Its subsidiary has entered into an agreement with Integrace to sell two brands, Mifegest and Cytolog. <cmsannotation type="cmsannotation" annotationid="Kitex Garments" comment="subhead" text="Kitex Garments">Kitex Garments</cmsannotation> Entered into a memorandum of understanding with the Telangana government to invest ₹2,406 crore in the state. <cmsannotation type="cmsannotation" annotationid="Yes Bank" comment="subhead" text="Yes Bank">Yes Bank</cmsannotation> Partnered with Visa to offer credit cards to its customers after the ban on MasterCard. <cmsannotation type="cmsannotation" annotationid="Nestle India" comment="subhead" text="Nestle India">Nestle India</cmsannotation> Reports suggest that the company’s chairman has revealed that it may face headwinds in 2022 due to rising coffee prices globally. <cmsannotation type="cmsannotation" annotationid="Action Construction Equipment" comment="subhead" text="Action Construction Equipment">Action Construction Equipment</cmsannotation> Launched its qualified institutional placement on Monday, with the price band fixed at ₹254.55 per equity share. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/how-to-check-allotment-status-for-sansera-engineering-ipo/articleshow/86380353.cms">Sansera Engineering IPO — How to check allotment status, listing date and more</a> <a href="https://www.businessinsider.in/tech/mobile/news/samsung-galaxy-z-fold-3-foldable-smartphone-review/articleshow/86366351.cms">Samsung Galaxy Z Fold 3 review: Creasing through the folds</a> <a href="https://www.businessinsider.in/tech/news/emmys-2021-netflix-beats-hbo-for-the-first-time-with-the-most-number-of-awards/articleshow/86365603.cms">Emmys 2021: Netflix beats HBO for the first time with the most number of awards</a>

SBI Cards, Adani Ports, HCL Tech and other top stocks to watch out for on September 21

New Delhi, Jun 23 () Federal Bank on Tuesday said it plans to raise up to Rs 12,000 crore, majority of which is targeted to come through borrowing instruments. The board of directors in its meeting on June 19, 2020, cleared proposals to raise up to Rs 8,000 crore through various debt instruments in Indian/foreign currency and Rs 4,000 crore through a mix of debt and issue of equity shares, Federal Bank said in a regulatory filing. The Kerala-based lender said it will seek shareholders nod for the fund raising plans in its ensuing annual general meeting on July 16, 2020, by way of video conference or other audio visual means. The fund raise, it said, may take place by way of any mode like rights issue, private placement, qualified institutions placement, preferential issue, further public offer, global depository receipts, American depository receipts, foreign currency convertible bonds or through any other permissible mode or a combination thereof, it added. The board also cleared the proposal for borrowing in Indian currency/in equivalent foreign currency by way of issue of debt instruments. This including but is not limited to additional tier I bonds (AT1 bonds), tier II bonds, long term bonds (infrastructure and affordable housing), masala bonds, green bonds, non-convertible debentures or such other debt securities as may be permitted by RBI from time to time, up to Rs 8,000 crore in domestic market and/or overseas market, it said. The debt may be issued by the bank in one or more tranches on a private placement basis within the overall borrowing limits of the bank. Also, the board of directors has decided to amend the memorandum of association of the bank for increase of authorised capital of the bank from Rs 500 crore comprising 250 crore equity shares of face value of Rs 2 each to Rs 800 crore comprising 400 crore equity shares of face value of Rs 2 each. "The board further recommended the same for the approval of shareholders by way of ordinary resolution at the forthcoming annual general meeting and to modify/add required clauses in the memorandum of association," it added. Federal Bank stock was trading at Rs 55.10 apiece on BSE, up 1.47 per cent from its previous close. KPM ANS ANS

Federal Bank gets board nod to raise up to Rs 12,000 cr

Mumbai, <keyword id="87184" type="DOMAIN" weightage="20" keywordseo="Thomas-Cook">Thomas Cook</keyword> (<keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword>) plans to raise up to ₹450 crore through preferential issue of Optionally Convertible Cumulative Redeemable Preference Shares (OCCRPS) to Fairbridge Capital (Mauritius) Limited to the promoter of the company In a regulatory filing the company has said that the "<keyword id="136326" type="COMPANY" weightage="20" keywordseo="Board-of-Directors">Board of Directors</keyword> of the company, at its meeting held today, has, <keyword id="6370698" type="DOMAIN" weightage="20" keywordseo="Inter">inter</keyword> alia, approved the <keyword id="47958" type="PERSON" weightage="20" keywordseo="issuance">issuance</keyword> of up to 45,00,00,000 Optionally Convertible Cumulative Redeemable Preference Shares of face value of ₹10 each to Fairbridge Capital (Mauritius) Limited, the promoter of the company, through private placement on a preferential basis aggregating upto ₹450 crore." The issuance would however be subject to the approval of regulatory or statutory authorities including the <keyword id="6354335" type="COMPANY" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> and the shareholders of the company at the forthcoming Extraordinary General Meeting. Further, it said that as a result of the proposed issue, the board approved the increase in the authorised preference share capital from ₹250 crore to ₹500 crore and consequential changes to the Capital Clause of the Memorandum of Association of the company. For the purpose of giving effect to the above issuance of OCCRPS, the board has authorised a committee to decide on various matters related to issuance of such OCCRPS. SEE ALSO: <a href="https://www.businessinsider.in/entertainment/news/pewdiepies-lyrics-targeting-cocomelon-and-jk-rowling-that-may-have-gotten-youtube-angry-enough-to-pull-the-video-down/articleshow/81102941.cms">PewDiePie's lyrics targeting CocoMelon and JK Rowling may have gotten YouTube angry enough to pull the video down</a> <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-gets-leaner-with-a-300-million-jabong-write-off-as-ceo-kalyan-krishnamurthy-lists-out-the-priorities-for-2021/articleshow/81105083.cms">Flipkart gets leaner with a $300 million Jabong write-off as CEO Kalyan Krishnamurthy lists out the priorities for 2021</a> <a href="https://www.businessinsider.in/stock-market/news/happiest-minds-is-leveraging-its-partnerships-with-big-players-like-google-microsoft-aws-salesforce/articleshow/81105035.cms">Happiest Minds is a smaller company that does the same thing as MindTree and L&amp;T Infotech — but clearly it is doing it a lot better</a> <a href="https://www.businessinsider.in/tech/news/india-may-require-twitter-facebook-and-others-to-remove-unlawful-content-within-36-hours/articleshow/81104740.cms">India may require Twitter, Facebook and others to remove unlawful content within 36 hours</a>

Thomas Cook India plans to raise up to ₹450 crore via preferential issue

New Delhi, Feb 12 () Targeting sustainable fisheries development, the Union Cabinet on Wednesday approved a pact signed between India and Iceland. "The Union Cabinet, chaired by Prime Minister Narendra Modi, was apprised of a Memorandum of Understanding (MoU) signed between India and Iceland in the field of fisheries," an official statement said. The pact was signed on 10th September, 2019."The MoU will strengthen the existing friendly relations between India and Iceland and will enhance consultation and cooperation on Fisheries including consultation on bilateral issues," it added.The salient features of this MoU are creation of facilities for exchange of scientists and technical experts and their proper placement, especially in areas of estimating total allowable Catches in off shore and deep sea areas.It also provides for training to fisheries professionals from key fisheries institutions in the various management aspects on areas of modern fisheries management and fish processing.The MoU provides for exchange of scientific literature research findings and other information as well as exchange of experts/expertise to study the prospects of fishing. The agreement seeks to promote processing and marketing of products from high seas fisheries for entrepreneurship development. MJH MKJ

Govt nod to India-Iceland pact in fisheries sector

New Delhi, Dec 2 () ICICI Venture Funds Management Company and four other entities settled with Sebi a case of alleged violation of norms pertaining to venture capital funds by paying a total of over Rs 26 crore towards settlement charges.
 Besides, they were also alleged to have violated Prohibition of Fraudulent and Unfair Trade Practices regulations, Sebi noted in five separate orders.
 India Advantage fund III, India Advantage fund IV, Dynamic India Fund III and Dynamic India Fund IV are the other four entities besides ICICI Venture Funds Management which settled the case.
 Sebi noted that ICICI Venture Funds Management was acting as investment manager to India Advantage fund III and India Advantage fund IV. 
 In addition, it was also acting as sponsor to foreign venture capital investors -- Dynamic India Fund III and Dynamic India Fund IV.
 The allegations against them included factual misrepresentation to investors with regard to registration status, inadequate information and lack of clarity in proposals for extension, liquidity and consent of investors, among others.
 Besides, it was also alleged that management of the funds was not in accordance with the terms and conditions specified in the private placement memorandum.
 However, pending proceedings, the entities filed settlement applications with the regulator without admitting or denying the guilt.
 The settlement terms proposed by them were considered by the regulator's High Powered Advisory Committee (HPAC). The committee recommended the cases for settlement on payment of Rs 5,21,92,635 each.
 The recommendation of HPAC was also accepted by the panel of whole time members of Sebi.
 Accordingly, the three entities paid their respective settlement amounts, following which the Securities and Exchange Board of India (Sebi) settled the proposed adjudication proceedings.
 Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by them is found to be untrue. SRS 
RVK

ICICI Venture Funds Management, 4 others pay over Rs 26 cr to settle case with Sebi

New Delhi, Feb 6 () Markets watchdog Sebi on Thursday came out with guidelines for compulsory performance benchmarking for Alternative Investment Funds (AIFs) as part of efforts to streamline disclosure standards. A template for Private Placement Memorandum (PPM) in the case of these funds, which have been classified into three categories, has also been issued. The PPM would have two parts -- a section for minimum disclosures and a supplementary section to provide any additional information. In a circular, the regulator said it has been decided to introduce the template for PPM, subject to certain exemptions, as well as put in place mandatory performance benchmarking for AIFs. Besides, there are provisions for additional customised performance reporting requirements. Sebi has also given operational guidelines for mandatory performance benchmarking of AIFs, including venture capital funds and the AIF industry. The performance benchmarking guidelines "shall not apply to Angel Funds registered under sub-category of Venture Capital Fund under Category I-AIF," the circular said. AIFs would have to carry out an annual audit of compliance with PPM terms. It can be done by either an internal or external auditor or a legal professional. Sections in the PPM pertaining to risk factors, legal, regulatory and tax considerations, among others, would be optional when it comes to audit. "Performance Benchmarking shall be done on a half-yearly basis based on the data as on September 30 and March 31 of each year," the regulator said. The findings of the audit, along with corrective steps, if any, should be communicated to the trustee of board or designated partners of the AIF, board of the manager and Sebi. These requirements would be effective from March 1. Angel funds as well as AIFs or schemes in which each investor commits a minimum capital contribution of Rs 70 crore or USD 10 million would be exempted from complying with the requirement of PPM as well as audit. Any association of AIFs that represents at least 51 per cent of the number of such funds, have to notify one or more benchmarking agencies, with whom each AIF needs to enter into an agreement for carrying out the benchmarking process. AIFs, for all their schemes which have completed at least one year from the date of "first close", should report all the necessary information, including scheme-wise valuation and cash flow data, to the benchmarking agencies in a timely manner. "If an applicant claims a track-record on the basis of India performance of funds incorporated overseas, it shall also provide the data of the investments of the said funds in Indian companies to the benchmarking agencies, when they seek registration as an AIF," Sebi said. In any marketing or promotional material as well as PPM, where past performance of the AIF is mentioned, the performance versus benchmark report provided by the benchmarking agencies should be provided, as per the circular. "As a first step, association will appoint benchmarking agencies and thereafter will set timeline for reporting of requisite data to benchmarking agencies by all the registered AIFs. "In this regard, association and benchmarking agencies will ensure that the first industry benchmark and AIF level performance versus benchmark reports are available latest by July 1, 2020, for the performance up to September 30, 2019," Sebi said. On a monthly basis, an association has to submit a progress report in this regard to Sebi till the creation of the first industry benchmark. In December, the regulator proposed introduction of minimum benchmarks for disclosure of performance history of AIFs and standardisation of draft document issued to investors by them. SRS RAM

Sebi issues performance benchmarking guidelines for AIFs

New Delhi, Dec 5 () With an aim to create a conducive environment for a sound Alternative Investment Fund (AIF), Sebi has proposed to introduce minimum benchmarks for disclosure of performance history of such asset class and standardisation of draft document issued to investors by them.
 AIFs are privately-pooled investment funds which collect funds from investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of their investors. There are three different categories of AIFs.
 The markets regulator noted that investments by registered AIFs have grown 75 per cent year-on-year in the last two years. Total investments made by AIFs have increased from over Rs 35,000 crore in March 2017 to Rs 61,400 crore in March 2018 to Rs 1.1 lakh crore in March 2019.
 However, at present, there is no disclosure by AIFs indicating returns on their investments and in turn their performance available in public domain, Sebi said while issuing the draft papers.
 Also, there is no standard format for draft document or private placement memorandum (PPM) currently, which provides the necessary information that a prospective investor would need to take an informed decision to invest in a particular AIF.
 Such asset class submits draft PPMs to Sebi before launch of their schemes for incorporation of comments received from the regulator in such draft documents. The regulator has observed that there is significant variation in the manner in which various clauses, explanations and illustrations are incorporated in the PPMs.
 Accordingly, Sebi has proposed to introduce these measures which are aimed at creating a conducive environment for a sound AIF.
 The regulator has sought public comments on these proposals till December 25 and final regulation will be put in place after taking into account suggestions of all stakeholders.
 With regard to introduction of minimum benchmarks for disclosure of performance history of AIFs, the regulator has proposed that AIFs which are registered with Sebi for at least 3 years, report their audited scheme-wise performance data to single or multiple benchmarking agencies (to be identified later), for benchmarking the individual fund's performance with the comparable industry performance.
 In all and any documents and media for marketing or promoting the AIF, if any data on the performance of such asset class is mentioned, the benchmark report of the AIF provided by the benchmarking agency to also be provided. Besides, a copy of this report should be provided to all investors.
 "Any investment manager of an existing unregistered fund, including foreign funds, shall provide the data on their investments in Indian companies, to benchmarking agencies, when they seek registration as AIF," Sebi said in the proposal.
 "If any performance data based on previous experience of the investment manager is referred in the fund documents or marketing material furnished to Sebi, the same shall be accompanied by the benchmark report received by the applicant," it added.
 Sebi said any association of registered AIFs which in terms of membership represent at least 50 per cent of such registered asset class, may propose one or more benchmarking agencies, who shall enter into agreement with AIFs for carrying out benchmarking process.
 All the AIFs that have been registered for more than 3 years, will provide the necessary information to all the agencies.
 Considering the importance of PPM to investors, to ensure that minimum standard of information be available in such draft papers and to facilitate the processing of AIF applications in a time bound manner, Sebi has proposed for standardisation of PPM and issued draft templates for PPM prepared for all the three categories of AIFs .
 The draft templates focuses on clarifying the riskiness of investment in AIFs, sequence of presentation of information as well as the list of minimum information to be provided under each heading in the PPM.
 On an annual basis, Sebi has proposed an audit of the compliance of the AIF with the terms of the PPM, with special emphasis on impact of side letters on other investors, shall be carried out by an auditor. The findings of the audit would be communicated to the trustee, board of the investment manager and Sebi.
 In case of any adverse findings, the corrective steps taken would also be submitted.
 Initially, the audit may be carried out by an internal or external auditor. Going ahead, Sebi may notify that the audit would be carried out only by an external auditor.
 Also, as per the proposal, summary of audit findings with respect to compliance with terms of PPM would be shared with all investors. SP ANU

Sebi proposes performance benchmarking, standardisation of draft documents by AIFs

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div></div></div>S&amp;P is watching Greece.
Ratings agency S&amp;P <a href="https://www.standardandpoors.com/prot/ratings/articles/en/us?articleType=HTML&amp;assetID=1245380316024">just put Greece's debt ratings on</a> "CreditWatch with negative implications." 
In a release, S&amp;P said, "The CreditWatch placement reflects our view that some of the economic and budgetary policies advocated by the newly elected Greek government, led by the left-wing Syriza party, are incompatible with the policy framework agreed between the previous government and official creditors. 
S&amp;P added that, "In our opinion, if the new Greek government fails to agree with official creditors on further financial support, this would further weaken Greece's creditworthiness."
This announcement from S&amp;P follows what has been a terrible week for Greek stocks, and more specifically Greek bank stocks. 
On Wednesday, <a href="http://www.businessinsider.com/greek-bank-shares-are-getting-smashed-2015-1">each of Greece's four largest banks</a> dropped by at least 20%.
The main problem here is that Greece's banks have largely been funded by a lifeline from the ECB, though this comes with some conditions that the newly elected Syriza government isn't keen to stick to. 
And more broadly, Syriza's reform promises made during the campaign have S&amp;P concerned. 
"In its pre-election program," S&amp;P writes, "Syriza also envisaged, among others, an increase in the minimum wage, the elimination of the property tax, and the easing of the budget primary surplus target. In our opinion, these policy proposals are not in line with the current Memorandum of Understanding agreed between the previous Greek government and official creditors." 
<a href="https://www.standardandpoors.com/prot/ratings/articles/en/us?articleType=HTML&amp;assetID=1245380316024">Read S&amp;P's full comment here »</a>

S&P To Greece: We're Watching You

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI95XF05K&amp;SMLS=1&amp;RW=1398&amp;RH=718#/SearchResult&amp;VBID=2C0FCI95XF05K&amp;SMLS=1&amp;RW=1398&amp;RH=718&amp;POPUPPN=25&amp;POPUPIID=2C0BF1WH1LIV">REUTERS/Fred Prouser</a>Marc Andreessen, co-founder and partner of Andreessen Horowitz. Andreessen Horowitz this week launched a $300 million crypto specialist fund.</div></div></div><ul><li>Andreessen Horowitz this week launched a $300 million crypto fund, one of the biggest specialist funds in the space.</li><li>Andreessen Horowitz is an outlier: the majority of VC funds are struggling to get to grips with how to invest in the space.</li><li>The rise of ICOs means many crypto companies don't need VC cash and investing in crypto tokens presents headaches around custody and investment terms.</li><li>The problems are likely to be temporary and industry insiders expect to see a lot more VC investment in the space going forward.</li></ul> Andreessen Horowitz this week <a href="http://www.businessinsider.com/andreessen-horowitz-a16z-crypto-fund-2018-6">launched a $300 million specialist crypto fund</a>, five years after first investing in the space through Coinbase. The venture capital firms' long interest in crypto and sizeable new fund make it a trailblazer - most VCs have largely ignored cryptocurrencies and are now struggling to play catch-up."If you look back a year ago at where we were, it really wasn't on many [venture capitalists'] radars," Michael Jackson, a partner at venture capital firm Mangrove, told Business Insider."Ethereum hadn't come up, ICOs hadn't started, bitcoin had been Mt Gox'd. There wasn't any mainstream interest aside from bitcoin and I think most of the venture world was agreed that investing in a currency wasn't for venture capital companies."Now the industry is reconsidering its position after an explosion of activity towards the end of 2017. Bitcoin rose over 1,000% against the dollar in 2017, with other cryptocurrencies recording similarly eye-catching returns. The entire market has more than halved since the start of 2018 but there is a sense that the technology is not going away."[VCs] certainly want to talk more and more to us, in fact ever since 2017 they're much more interested in talking to us to invest in us," Jon, the COO of digital cryptocurrency exchange Shapeshift, told Business Insider. (Shapeshift doesn't give out the second names of its employees for fear of phishing attacks.)Unfortunately for VCs, the particular nature of cryptocurrency presents plenty of potential hurdles.<h2>'They're a little late to the boat'</h2>2017 saw the emergence of ICOs - initial coin offerings - as a new fundraising method unique to the cryptocurrency space. ICOs allow startups to mint their own digital currencies or tokens and sell them in exchange for ether or bitcoin that can be sold for fiat as and when they need working capital.Billions have been raised through this method, most coming from individual investors. It allows startups in the space to effectively circumvent the VC world if they want.Even for crypto companies that don't do an ICO, the rising tide of cash in the industry means that many are bringing in huge revenues and profiting from money flowing into the sector.The CEO of crypto derivatives platform BitMEX told Business Insider in January: <a href="http://www.businessinsider.com/bitmex-ceo-arthur-hayes-on-vc-funding-2018-1">"The mining firms, the trading platforms - they don't need VC money. They're perfectly capable of funding </a>capex<a href="http://www.businessinsider.com/bitmex-ceo-arthur-hayes-on-vc-funding-2018-1"> and </a>opex<a href="http://www.businessinsider.com/bitmex-ceo-arthur-hayes-on-vc-funding-2018-1"> from retained earnings."</a>Jon at Shapeshift said his business turned into an accidental hedge fund in 2017 due to the inventory of cryptocurrencies it holds."Of course, now we don't need their money anymore," Shapeshift's Jon said. "They're a little late to the boat."Venture funds could theoretically buy crypto tokens offered in ICO raises but that presents problems too. Laws in some jurisdictions prevent venture funds from straying beyond equity and convertible debt investments, and most funds are bound by the terms of sales documents produced when raising money for their funds."We've historically written pretty boilerplate stuff in that, which is equity, convertible debt, and some amount of cash into companies and that's it," Mangrove's Jackson said. "We have never included the term token, or cryptocurrencies or anything like that because they didn't exist when the PPMs [private placement memorandum] were written."<h2>'What the hell do you do with them?'</h2>Even if funds find ways around these problems and buy tokens, there still the problem of how to handle these investments.<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><a href="http://pictures.reuters.com/C.aspx?VP3=SearchResult&amp;VBID=2C0FCI95XWN31&amp;SMLS=1&amp;RW=1398&amp;RH=718&amp;RW=1398&amp;RH=718#/SearchResult&amp;VBID=2C0FCI95XWN31&amp;SMLS=1&amp;RW=1398&amp;RH=718&amp;POPUPPN=12&amp;POPUPIID=2C0FQE38H3R9Y">REUTERS/Mike Segar</a>Ledger, whose Nano S cryptocurrency hardware wallet is pictured, is working on institutional versions of its products.</div></div></div>"If you get a load of crypto tokens, what the hell do you do with them?" Jackson said. "You get a USB key. Well, to be honest, we're not really geared up around USB keys and certainly having a USB key or a ledger in the office - it just goes against all the sort of governance and things that you've got used to."Everybody's struggling. When I talk to [other investors] they're looking at the token side of things and struggling with some of the practicalities and things around that."Jackson, who authored a report last year on crypto's impact on venture capital, said he expects the problem to be a temporary one. Companies such as Bitcoin Suisse, Coinbase, and Ledger are all developing custodial solutions for crypto.<h2>'Some of the biggest and best VCs saw ahead'</h2>Still, given all these hurdles, why are VCs bothering with crypto at all? The answer is because the people who have invested in venture funds are asking for it."VCs wanted to invest in all those companies and were told by their LPs involved in their VC funds, 'oh no we're not interested in that,'" Shapeshift's Jon said."Now those same people who couldn't get those deals done are now the ones having people come to them and say: 'What's our crypto strategy?' Our crypto strategy was investing in all those companies a year and a half ago that I told you about and you all said no to - that was our strategy and now we've missed it."Ari Paul, the CIO of Blocktower Capital, told a recent conference in London that traditional investors are increasingly moving from a fear of crypto towards "FOMO" - fear of missing out.One Silicon Valley VC told BI recently that they had begun investing in ICO tokens after consulting with their limited partners (LPs), who are the institutions that back the VC funds. The LPs told the fund to go for it because "everyone else is doing it."Cryptocurrency hedge fund Polychain Capital was founded in late 2016 and this week it <a href="http://fortune.com/2018/06/26/polychain-capital-bitcoin/">became the first crypto specific fund to hit $1 billion in assets under management</a>, demonstrating rising investor interest.Thomas Bertani, the director of cryptocurrency app Eidoo, which raised $27 million through an ICO last year, expects to see a "huge wave of capital hit the market" by the end of the year as VCs wrap their heads around investing in the space.Shapeshift's Jon said: "VCs tend to like a herd. When the herd move in, then everybody wants to move in. There are a few that saw ahead of that."Jon praised the early adopters like Andreessen Horowitz, who took a chance on the space when it was still largely associated with the dark web and cyberpunk anarchists."Some of the biggest and best VCs I think saw ahead of those," he said. "Some of the VCs like Sequoia and Union Square and Andreessen Horowitz. They took the chance that no one was willing to take and now everyone else is jumping on board because it's much clearer now. It's kind of the way things go."<a href="http://www.businessinsider.com/intelligence/future-of-zelle-venmo-and-p2p-payments?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen&amp;utm_content=payments_ctgr_leadgen&amp;utm_campaign=payments_ctgr_leadgen_future-of-zelle"></a> <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/impact-investor-says-stop-trying-help-people-without-including-them-2018-6">This impact investor says stop trying to help people without including them in the conversation</a></h3> <div> </div> </div>

You Searched For "placement memorandum" and got 11 results

Sebi mulls flexibility for AIF, VCFs to deal with unliquidated investments beyond tenure expiry

PTI

SEBI asks AIFs to provide "direct plan" option to investors; introduces trail model for distribution commission

PTI

SBI Cards, Adani Ports, HCL Tech and other top stocks to watch out for on September 21

Rounak Jain

Federal Bank gets board nod to raise up to Rs 12,000 cr

PTI

Thomas Cook India plans to raise up to ₹450 crore via preferential issue

IANS

Govt nod to India-Iceland pact in fisheries sector

PTI

ICICI Venture Funds Management, 4 others pay over Rs 26 cr to settle case with Sebi

PTI

Sebi issues performance benchmarking guidelines for AIFs

PTI

Sebi proposes performance benchmarking, standardisation of draft documents by AIFs

PTI

S&P To Greece: We're Watching You

Myles Udland

'What the hell do you do with them?': Venture capitalists are still trying to figure out their crypto strategy

Oscar Williams-Grut

Popular Keywords

Buying Guides