Retention of liquidation proceeds and Inoperative Fund status for AIFs now follow specified disclosure, consent, and reporting conditions. SEBI has specified the conditions and reporting framework for retention of liquidation proceeds beyond the permissible fund life of an AIF or scheme, and for obtaining Inoperative Fund status. Retention may be allowed on the basis of demonstrable litigation or demand notices, investor consent for anticipated liabilities, or substantiated residual winding-up expenses, subject to disclosure and investment conditions. An AIF tagged as Inoperative Fund may not launch new schemes or charge management fees, and must submit annual retention status reports until liabilities are resolved and retained monies are distributed.
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.
Retention of liquidation proceeds and Inoperative Fund status for AIFs now follow specified disclosure, consent, and reporting conditions.
SEBI has specified the conditions and reporting framework for retention of liquidation proceeds beyond the permissible fund life of an AIF or scheme, and for obtaining Inoperative Fund status. Retention may be allowed on the basis of demonstrable litigation or demand notices, investor consent for anticipated liabilities, or substantiated residual winding-up expenses, subject to disclosure and investment conditions. An AIF tagged as Inoperative Fund may not launch new schemes or charge management fees, and must submit annual retention status reports until liabilities are resolved and retained monies are distributed.
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