Capital markets regulator Sebi on Friday tweaked the framework for on-boarding traders by Different Funding Funds (AIFs).
This got here in view of amendments to the Prevention of Cash-Laundering (Upkeep of Data) Guidelines, 2005.
The Regulation 10(a) of AIF norms laid down the standards for on-boarding traders whereby AIFs are allowed to garner funds from any sort of investor — Indian, international, or non-resident Indians — by means of the issuance of models.
Nevertheless, when on-boarding traders, the AIF supervisor should be sure that the investor or its useful proprietor is just not listed within the sanctions record by the United Nations Safety Council, Sebi mentioned in its round on Friday.
Moreover, the investor shouldn’t be a resident in a rustic recognized by the Monetary Motion Process Pressure (FATF) as having strategic anti-money laundering or combating the financing of terrorism deficiencies, topic to countermeasures, or a jurisdiction making inadequate progress in addressing these deficiencies, it added.
If an investor, who has beforehand joined the AIF, now not meets these circumstances, the AIF supervisor is prohibited from drawing additional capital contributions from that investor for making investments till the investor complies with the desired circumstances, Sebi mentioned.
The transfer is geared toward compliance with worldwide sanctions and anti-money laundering measures within the context of AIF investments.
The brand new framework will come into drive with speedy impact.
(Solely the headline and film of this report might have been reworked by the Enterprise Normal employees; the remainder of the content material is auto-generated from a syndicated feed.)
First Revealed: Jan 12 2024 | 3:19 PM IST
