Conditions for Category II Alternative Investment Funds

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....s (including securitised debt instruments) which are rated 'A' or below by a credit rating agency registered with the Board, directly or through investment in units of other Alternative Investment Funds, in the manner as may be specified by the Board;] (b) ^3[****] ^8[(c) Category II Alternative Investment Funds shall not borrow funds directly or indirectly or engage in any leverage for the purpose of making investments or otherwise, except for borrowing funds to meet temporary funding requirements and day-to-day operational requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the investable funds and subject to such conditions as may be specified by th....

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....ed on the SME exchange or SME segment of an exchange pursuant to due diligence of such companies subject to the following conditions: (i) the fund shall disclose any trading in securities pursuant to such due-diligence, within two trading days of such trading, to the stock exchanges where the investee company is listed; (ii) such investment shall be locked in for a period of one year from the date of investment.]     ************** NOTES:- 1. Substituted by the SEBI (Alternative Investment Fund) (Amendment) Regulations, 2013, w.e.f 16-09-2013 for the word "corpus" 2. Substituted vide Notification No. SEBI/LAD-NRO/GN/2021/21 dated 05-05-2021 before it was read as, "(a) Category II ....

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....vestment shall be locked in for a period of one year from the date of investment." 6. Inserted vide Notification No. SEBI/LAD-NRO/GN/2023/113 dated 09-01-2023 7. Inserted vide Notification No. SEBI/LAD-NRO/GN/2024/168 dated 25-04-2024 8.  Substituted vide Notification No. SEBI/LAD-NRO/GN/2024/198 dated 05-08-2024 before it was read as, "(c) Category II Alternative Investment Funds may not borrow funds directly or indirectly and shall not engage in leverage except for meeting temporary funding requirements for not more than thirty days, not more than four occasions in a year and not more than ten percent of the ^1[investable funds]; ^7[Provided that Category II Alternative Investment Funds m....