The Securities and Exchange Board of India (SEBI) has notified the new Provisions related to Special Situation Funds under SEBI (Alternative Investment Funds) Regulations, 2012.
In exercise of the powers conferred by sub-section (1) of Section 30 read with sub-section (1) of Section 11, clause (ba) and clause (c) of sub-section (2) of Section 11 and sub-section (1) and (1B) of Section 12 of the Securities and Exchange Board of India Act, 1992, the Board has notified the Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2022.
In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 Chapter III-B shall be inserted in respect of Special Situation Funds.
The provisions of this Chapter shall apply to special situation funds and schemes launched by such special situation funds. All other provisions of these regulations, except clauses (b) and (c) of regulation 10, clauses (a), (c) and (e) of sub-regulation (1) of regulation 15, clause (a) of sub-regulation (1) of regulation 16 and the guidelines and circulars issued under these regulations, unless the context otherwise requires or is repugnant to the provisions of this Chapter, shall apply to the special situation funds, the schemes of special situation funds and their sponsors and managers.
An applicant may apply for registration as a special situation fund in accordance with the provisions of Chapter II of these Regulations.
Each scheme of a special situation fund shall have a corpus as may be specified by the Board. The special situation fund shall accept from an investor, an investment of such value as may be specified by the Board. The special situation fund shall not accept investments from any other Alternative Investment Fund other than a special situation fund.
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