The Securities and Exchange Board of India (SEBI) has extended again the time allowed to private equity and venture capital funds to meet their regulatory disclosure obligations due to the spurt of coronavirus crisis.
The move comes in the wake of recent market events due to COVID-19 pandemic, SEBI said in a circular. Accordingly, AIFs and VCFs may submit the regulatory filings for the months ending March, April, May and June 2020, as applicable,on or before August 07, 2020.
The extension is applicable to all AIFs, including private equity and venture capital funds.
SEBI has taken several measures over the past couple of months to ease the compliance burden on publicly listed AIFs, companies, ratings firms and foreign portfolio investors. These steps come in the wake of the corona-virus pandemic that prompted the government to impose a nationwide lockdown from March 25 to May 31. SEBI issued extension circular in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and shall come into force with immediate effect.
The AIF regulations divide funds into three categories. Category-I covers venture capital funds while Category-II covers private equity and debt funds. Category-III covers hedge funds and PIPE funds, or which make private investment in public equities.
According to existing SEBI guidelines, Category I and II funds are required to submit reports on a quarterly basis. These reports would have been due on March 31, but these funds now have a window till August 7.
SEBI had earlier extended the due date for regulatory filings for alternative investment funds (AIFs) and venture capital funds (VCFs) for the periods ended March 31 and April 30 by two months, over and above the timelines prescribed under Sebi (Alternative Investment Funds) Regulations.