Category III AIF participation in commodity derivatives permitted subject to client rules, concentration limits, leverage consent and disclosures. SEBI permits Category III AIFs to participate in commodity derivatives as clients, subject to client rules, exchange position limits and SEBI instructions; exposure to any single underlying commodity must be limited by concentration controls; leverage or borrowing is permitted only with investor consent and within Board-specified limits; AIFs must disclose commodity derivatives investment in the private placement memorandum, obtain consent or offer exit to dissenting existing investors, comply with applicable foreign exchange and RBI guidelines, meet SEBI reporting requirements, and adhere to the SEBI (Alternative Investment Funds) Regulations, 2012.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Category III AIF participation in commodity derivatives permitted subject to client rules, concentration limits, leverage consent and disclosures.
SEBI permits Category III AIFs to participate in commodity derivatives as clients, subject to client rules, exchange position limits and SEBI instructions; exposure to any single underlying commodity must be limited by concentration controls; leverage or borrowing is permitted only with investor consent and within Board-specified limits; AIFs must disclose commodity derivatives investment in the private placement memorandum, obtain consent or offer exit to dissenting existing investors, comply with applicable foreign exchange and RBI guidelines, meet SEBI reporting requirements, and adhere to the SEBI (Alternative Investment Funds) Regulations, 2012.
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