Liquidation scheme option requires investor consent and specified bidding procedures in the liquidation period for unsold AIF assets. SEBI permits AIFs during the liquidation period to sell unliquidated investments to a designated Liquidation Scheme or distribute them in-specie after obtaining 75% investor consent by value. The manager must arrange a bid for at least 25% of the unliquidated investments, disclose the bid and two independent valuations, and offer dissenting investors an exit from the 25% bid; bidders related to the scheme cannot take exit. For performance reporting the sale or distribution is valued at the bid value if the 25% bid condition is met, otherwise at one rupee. Managers must report compliance and values to SEBI portals and Performance Benchmarking Agencies.
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.
Liquidation scheme option requires investor consent and specified bidding procedures in the liquidation period for unsold AIF assets.
SEBI permits AIFs during the liquidation period to sell unliquidated investments to a designated Liquidation Scheme or distribute them in-specie after obtaining 75% investor consent by value. The manager must arrange a bid for at least 25% of the unliquidated investments, disclose the bid and two independent valuations, and offer dissenting investors an exit from the 25% bid; bidders related to the scheme cannot take exit. For performance reporting the sale or distribution is valued at the bid value if the 25% bid condition is met, otherwise at one rupee. Managers must report compliance and values to SEBI portals and Performance Benchmarking Agencies.
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