In order to have uniform compliance standards and for ease of compliance, markets regulator Sebi on Thursday came out with a standard reporting format for alternative investment fund (AIF) pertaining to Private Placement Memorandum (PPM) audit report. The reporting format has been prepared in consultation with pilot Standard Setting Forum for AIFs (SFA).
Under the rules, AIFs are required to submit their annual PPM audit reports to the trustee, board of directors, or designated partners of the AIF, as well as to the board of directors or designated partners of the manager and Sebi, within six months after the end of the financial year.
In a circular, Sebi said that the new reporting format will be hosted on the websites of the AIF associations which are part of SFA within two working days of issuance of this circular.
The reporting requirement would be applicable for PPM audit reports to be filed for the financial year ending March 31, 2024 onwards.
The associations would assist all AIFs in understanding the reporting requirements and in clarifying or resolving any issues which may arise in connection with reporting to ensure accurate and timely reporting.
The PPM audit reports would be submitted to Sebi by AIFs online on the Sebi Intermediary Portal (SI Portal) as per the prescribed format.
Sebi said that audit of sections of PPM relating to risk factors, legal regulatory and tax considerations and track record of first time managers would be optional. In addition, illustration of fees and expenses and glossary and terms will also be optional.
To keep pace with the fast-changing landscape of AIF industry and for policy and supervision purposes, the reporting format would be reviewed periodically by pilot SFA in consultation with Sebi. In case of any revisions in the reporting format, a revised format will be made available on websites of the associations which are part of SFA.
