Sebi move to ease compliance burden on AIFs, VCs great help for funds: IVCA Sebi move to ease compliance burden on AIFs, VCs great help for funds: IVCA New Del'

New Delhi, Apr 6 (PTI) The IVCA, an association representing India's private equity and venture capital industry, on Monday said Sebi's move to extend the regulatory filing period by two months for AIFs and VCFs is a "great help" for the funds given the temporary dislocation in their operations. This relaxation has come after sustained efforts by the Indian Private Equity and Venture Capital Association (IVCA), the industry body said in a statement.

The regulatory filing due dates for AIFs (alternative investment funds) and VCFs (venture capital funds) for the period ending March 31, 2020 and April 30, 2020 have been extended by two months. This was over and above the timelines prescribed under Sebi (Alternative Investment Funds) Regulations.

The relaxation by Sebi is one of the great helps for the funds given the temporary dislocation in operations as well as the overall business of portfolio companies, it added. The IVCA said AIFs are facing quite a few operational challenges because of COVID-19, apart from supporting their investee companies they have to comply with various statutory compliances and submissions.

Under the circumstances, the IVCA said it took up various time linked compliances with Sebi, and the regulator has been highly considerate to the situation by giving two months grace period for all submission/compliances for the months ending March and even April 2020. AIFs are privately-pooled investment funds which collect funds from investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of their investors. There are three different categories of AIFs.