Sebi proposes direct reporting of PPM changes by AIFs to streamline compliance costs.

Mumbai: The Securities and Exchange Board of India (Sebi) has proposed that certain changes to private placement memorandums (PPMs) of alternative investment funds (AIFs) can be filed directly rather than through merchant bankers. The move aims to streamline compliance costs for AIFs and promote ease of doing business.

Currently, AIFs are required to inform Sebi of any changes in PPM terms and conditions along with a due diligence certificate to Sebi through their merchant bankers. It must be done comprehensively within one month after the end of each fiscal year.

Additionally, the regulator has proposed to exempt accredited investors from the requirement for large value funds (LVFs) to notify changes to their PPM terms through commercial banks.

LVFs may submit changes in PPM terms directly to SEBI along with an undertaking duly signed and stamped by the CEO of the AIF Manager and the Compliance Officer of the AIF Manager,” Sebi said in a discussion paper.