SEBI Extends Deadline for AIFs' Differential Rights Reporting

The Securities and Exchange Board of India (SEBI) has postponed the deadline for Alternative Investment Funds (AIFs) to report their differential rights issues to March 31, 2025. This extension follows requests from the AIF industry. SEBI aims for fair treatment of investors with clear guidelines on risk and reward sharing.

The Securities and Exchange Board of India (SEBI) announced on Monday a month-long extension for Alternative Investment Funds (AIFs) to report on differential rights issues, moving the original February 28, 2025 deadline to March 31, 2025.

The adjustment comes after the AIF industry requested more time to comply with the reporting requirements. The obligations apply to AIFs that filed their Private Placement Memorandum (PPM) with SEBI beginning March 1, 2020, and who subsequently issued differential rights beyond standard guidelines.

In amendments to AIF Regulations in November 2012 and subsequent guidelines in December, SEBI has clarified that investment risks and rewards must be equitably shared among investors, prompting AIFs to ensure proportional distribution of proceeds. This move is intended to maintain fair treatment and uphold the regulatory framework governing pooled investment vehicles.

(With inputs from agencies.)