Relaxation in timeline for reporting of differential rights issued by AIFs

CIRCULAR
SEBI/HO/AFD/AFD-POD-1/P/CIR/2025/29 March 03, 2025 To, All Alternative Investment Funds (AIFs) Sir/Madam, Sub: Relaxation in timeline for reporting of differential rights issued by AIFs

1. Securities and Exchange Board of India (Alternative Investment Funds)
   Regulations, 2012 (“AIF Regulations”) have been amended and notified on November 18, 2024, with respect to maintaining pro-rata and pari-passu rights of investors in a scheme of an AIF.

2. Subsequently, SEBI Circular dated December 13, 2024 on ‘Pro-rata and pari￾passu rights of investors of AIFs’ prescribed, inter-alia, the framework with
   respect to differential rights that may be offered by AIFs to select investors without affecting the rights of other investors.

3. In terms of para 17.1. of the aforesaid SEBI circular, a one-time reporting
   requirement has been mandated for AIFs/schemes of AIFs whose PPMs were filed with SEBI on or after March 01, 2020, and have issued differential right(s) which do not fall under the implementation standards formulated by Standard Setting Forum for AIFs. Such information was to be submitted to SEBI in the prescribed format, on or before February 28, 2025.

4. Based on representation received from the AIF industry requesting additional
   time to meet the aforesaid reporting requirement, it has been decided to extend the said timeline to March 31, 2025, for ease of compliance.

5. This circular shall come into force with immediate effect.

6. This circular is issued with the approval of the competent authority.

7. This circular is issued in exercise of powers conferred under Section 11(1) of
   the Securities and Exchange Board of India Act, 1992, read with Regulations 20(22) and 36 of AIF Regulations, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

8. The circular is available on SEBI website at www.sebi.gov.in under the
   categories "Legal framework - Circulars" and "Info for - Alternative Investment Funds”. Yours faithfully, Sanjay Singh Bhati Deputy General Manager Tel no.: +91-22-26449222 ssbhati@sebi.gov.in