A Threshold Limit of 25% u/r 15(1)(c) of AIF Norms Shall Apply at Level of Individual Target Co. Acquired by ARC Trust | SEBI
- News|Blog|Company Law|
- < 1 minute
- By Taxmann
- |
- Last Updated on 14 March, 2024
Latest from Taxmann
Informal Guidance No. SEBI/HO/AFD/PoD/OW/2023/49070, Dated: 12.12.2023
Mangalkari Asset Investment AIF registered with SEBI sought informal guidance as to whether a threshold limit of 25% in an Investee Co. under regulation 15(1)(c) of AIF Regulations shall apply at the level of individual target co. acquired by ARC Trust or it will be at the level of individual ARC Trust regardless of multiple target company loan accounts it may hold.
Regulation 15 of the AIF Regulations, 2012 specifies the investment conditions for all categories of AIFs. As per Regulation 15(1)(c), Category I and II of Alternative Investment Funds shall not invest more than 25% of the investable funds in an investee company, either directly or through investment in units of other AIFs.
The clause ‘or through investment in units of other AIF’ in Regulation 15(1)(c) indicates that investment in an investee company by the AIF directly and through investment in units of other AIFs, is to be considered in the calculation of concentration limit.
In response, SEBI clarified that the threshold limit shall apply at the level of individual target company acquired by the ARC Trust in addition to investments made by AIFs directly in the target company.
Click Here To Read The Full Updates
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
CA | CS | CMA
