However, any investments made prior to July 1, are exempted from the requirement of being held in dematerialised form, except in specific cases, it added.
Under the revised framework, the regulator stated that investments made before July 1, must be converted into dematerialised form before October 31.
If, the investee company of the AIF has been mandated to facilitate dematerialisation or if the AIF exercises control over the company along with other Sebi-registered entities required to hold investments in demat form, the circular said.
The markets watchdog has also granted exemptions to schemes of AIFs whose tenure, excluding permitted extensions, ends on or before October 31, as well as schemes already in an extended tenure as of February 14.
Further, the trustee/sponsor of AIF, will ensure compliance with these revised provisions through the ‘Compliance Test Report’ prepared by the manager.
