Encumbrance on investee equity permitted for infrastructure projects, enabling borrowing subject to SEBI conditions requirements. The amendment defines dissolution period and encumbrance, permits Category I and II AIFs to create encumbrance on equity of investee companies in specified infrastructure sub-sectors solely for borrowing subject to Board conditions, mandates due diligence by AIFs, managers and key personnel to prevent circumvention of financial-sector laws, prescribes filing an information memorandum through a merchant banker for schemes entering a dissolution period, prohibits fresh commitments or new investments during dissolution, limits the dissolution period to the original tenure, allows specified additional liquidation periods, and requires in-specie distribution if unliquidated investments remain.
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Provisions expressly mentioned in the judgment/order text.
Encumbrance on investee equity permitted for infrastructure projects, enabling borrowing subject to SEBI conditions requirements.
The amendment defines dissolution period and encumbrance, permits Category I and II AIFs to create encumbrance on equity of investee companies in specified infrastructure sub-sectors solely for borrowing subject to Board conditions, mandates due diligence by AIFs, managers and key personnel to prevent circumvention of financial-sector laws, prescribes filing an information memorandum through a merchant banker for schemes entering a dissolution period, prohibits fresh commitments or new investments during dissolution, limits the dissolution period to the original tenure, allows specified additional liquidation periods, and requires in-specie distribution if unliquidated investments remain.
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