SEBI asks for Publishing Investor Charter and Disclosure of complaints by AIFs [Read Circular]

The Market Regulator, the Securities and Exchange Board of India (SEBI) has asked the All SEBI registered Alternative Investment Funds (AIFs) for Publishing Investor Charter and Disclosure of complaints.

With a view to providing relevant information to investors about the various activities pertaining to AIFs, an Investor Charter has been prepared by SEBI.This Investor Charter is a brief document containing details of services provided to investors, details of grievance redressal mechanism, responsibilities of the investors etc., at one single place, in lucid language for ease of reference.

In this regard, all AIFs are advised to take necessary steps to bring the Investor Charter  to the notice of their investors. In case of new schemes, disclose Investor Charter in the Private Placement Memorandum (PPM); In case of existing schemes, as a one time measure,disclose Investor Charter to the investors on their registered e-mail. Additionally, in order to bring about further transparency in the Investor Grievance Redressal Mechanism, it has been decided that data on investor complaints received against AIFs and each of their schemes and redressal status thereof shall be disclosed by all AIFs’.

These disclosure requirements are in addition to the existing requirements pertaining to the investor grievance handling mechanism under various Regulations, circulars and directions, issued by SEBI. The provisions of this circular shall come into effect from January 01, 2022.

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

The circular is available on SEBI website at www.sebi.gov.in under the category “Legal Framework-Circulars” and “Info for – Alternative Investment Funds”.

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