Sebi's new rules specify max limit for large value funds' tenure extension

Markets regulator Sebi has amended alternative investment funds (AIF) norms specifying maximum permissible limit for extension of tenure by 'Large Value Funds'.

In a notification, Sebi said a large value fund for accredited investors may be permitted to extend its tenure up to five years. This is subject to the approval of two-thirds of the unit holders by value of their investment in the large value fund for accredited investors.

The extension in tenure of any existing scheme of a large value fund for accredited investors will be subject to such conditions as specified by the regulator.

The move is aimed at providing clarity to investors in Large Value Funds for Accredited Investors (LVFs) about their investment horizon.

Large Value Fund (LVF) for accredited investors means an AIF or scheme of an AIF in which each investor (other than the manager, sponsor, employees or directors of the AIF or employees or directors of the manager) is an accredited investor and invests at least Rs