Guidelines for borrowing by Category I and Category II AIFs and maximum permissible limit for extension of tenure by LVFs

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.... Large Value Fund for Accredited Investors (LVFs). Copy of the aforesaid notification is available at link. A. Guidelines for borrowing by Category I and Category II AIFs 2. In terms of Regulation 16(1)(c) and Regulation 17(c) of AIF Regulations, Category I and Category II AIFs 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 SEBI from time to time. 3. In this regard, in order to fa....

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....fferent drawdown timelines to investors. 4.6. The manager shall disclose the details with respect to amount borrowed, terms of borrowing and repayment to all the investors of the AIF/scheme, on a periodic basis as per the terms of agreement with the investors of the AIF. 5. Further, all Category I and Category II AIFs shall maintain thirty days cooling off period between two periods of borrowing as permissible under AIF Regulations. The cooling off period of thirty days shall be calculated from the date of repayment of previous borrowing. B. Maximum permissible limit for extension of tenure by LVFs 6. In terms of proviso to Regulation 13(5) of AIF Regulations, a LVF may extend its tenure up to five years subject to the approval of two-t....