Disclosure Standards for Alternative Investment Funds (AIFs)

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.... Committee (AIPAC), it has been decided to introduce template(s) for PPM, subject to certain exemptions, and mandatory performance benchmarking for AIFs with provisions for additional customized performance reporting. A. Template(s) for PPM 2. PPM is a primary document in which all the necessary information about the AIF is disclosed to prospective investors. To ensure that a minimum standard of disclosure is made available in the PPM, it has been decided to mandate a template for the PPM providing certain minimum level of information in a simple and comparable format. AIFs are also permitted to provide additional information in their PPM. 3. Thus, the template for PPM shall have two parts viz. Part A - section for minimum....

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....currency) and also provides a waiver to the fund from the requirement of PPM in the SEBI prescribed template and annual audit of terms of PPM, in the manner provided at Annexure 3. 9. The aforesaid requirements shall come into effect from March 01, 2020. B. Performance Benchmarking of AIFs 10. Based on the request of the industry, it was considered appropriate that an industry benchmark be developed to compare the performance of AIF industry against other investment avenues, as also global investment opportunities. Accordingly, a proposal for performance benchmarking of AIFs was incorporated in the aforementioned Consultation Paper. 11. As the industry needs the flexibility to showcase its performance based on different criteria....

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....so provide the data of the investments of the said funds in Indian companies to the Benchmarking Agencies, when they seek registration as AIF. (vi) In the PPM, as well as in any marketing or promotional or other material, where past performance of the AIF is mentioned, the performance versus benchmark report provided by the benchmarking agencies for such AIF/Scheme shall also be provided. (vii) In any reporting to the existing investors, if performance of the AIF/Scheme is compared to any benchmark, a copy of the performance versus benchmark report provided by the Benchmarking Agency shall also be provided for such AIF/scheme. (viii) As a first step, Association will appoint Benchmarking Agencies and thereafter wi....