SEBI Prescribes a Standardised Approach for Valuation of Investment Portfolio of AIFs
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- Last Updated on 23 June, 2023
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Circular No. SEBI/HO/AFD/PoD/CIR/2023/97, Dated: 21.06.2023
As per Regulation 23(1) of the SEBI (Alternative Investment Fund) Regulations, AIFs are required to carry out the valuation of their investments in a manner specified by SEBI. In order to provide clarity, SEBI has clarified that the valuation of securities for which valuation norms have been prescribed under SEBI (Mutual Funds) Regulations, 1996 must be carried out as per these regulations.
Further, for securities that do not have specific valuation norms prescribed, the valuation shall be carried out as per valuation guidelines endorsed by an AIF industry association. To be considered eligible, the AIF industry association must represent at least 33% of the number of SEBI-registered AIFs in terms of membership.
Also, the eligible AIF industry association shall endorse appropriate valuation guidelines after taking into account the recommendations of Alternative Investment Policy Advisory Committee of SEBI.
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