AIFs need to disclose disciplinary history: Sebi

The Alternative Investment Funds (AIF) will have to mandatorily disclose their disciplinary history as well the background of sponsor, manager and their promoters in the placement memorandum to Sebi, the capital markets regulator has said.AIFs are basically funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.

“All AIFs shall mandatorily disclose disciplinary history of AIF, sponsor, manager and their directors/partners/ promoters and associates in their placement memorandum,” Sebi noted.The Securities and Exchange Board of India (Sebi) has conveyed its views in response to an ‘informal guidance’ sought by Peninsula Brookfield India Real Estate Fund.

In addition, informations pertaining to all the associates outside India, where the director, trustee, partner, sponsor, manager of AIF holds either individually or collectively more than 15 per cent of paid-up equity share capital or partnership interest will have to be reported to Sebi.In case these entities hold below the prescribed limit of 15 per cent interest, the capital markets watchdog said it will not be necessary for them to make disclosure.