Circular No. SEBI/HO/AFD/SEC-1/P/CIR/2024/22; Dated: 18.04.2024
As per Regulation 28 of the SEBI (AIF) Regulations, 2012 and Clause 2.4 of the SEBI Master Circular dated July 31, 2023, it is mandatory for Alternative Investment Funds (AIFs) to carry out an annual audit of compliance with the terms of the Private Placement Memorandum (PPM).
In terms of Clause 2.4.2 of the Master Circular, AIFs are required to submit Annual PPM Audit Reports to the Trustee, Board of Directors or Designated Partners of the AIF, Board of directors or Designated Partners of the Manager and SEBI, within 6 months from the end of the Financial Year.
In order to ensure uniform compliance standards and facilitate compliance reporting, the SEBI has introduced a standard reporting format for the Private Placement Memorandum (PPM) Audit Report. This format is applicable to various categories of AIFs and has been prepared in consultation with the pilot Standard Setting Forum for AIFs (SFA).
The said reporting format must be hosted on the websites of the AIF Associations that are part of the SFA within 2 working days of the issuance of this circular. The associations are required to assist all AIFs in understanding the reporting requirements and in clarifying or resolving any issues that may arise in connection with reporting to ensure accurate and timely reporting.
Further, the PPM audit reports must be submitted to SEBI by AIFs online via the SEBI Intermediary Portal (SI Portal) as per the aforesaid format. Also, the reporting requirement shall be applicable for PPM audit reports to be filed for the financial year ending March 31, 2024 onwards.
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