Overseas Investment Limits of AIFs and VCFs Increased

SEBI issued a circular on July 03, 2018 (“Circular”) dealing with Overseas Investment by Alternative Investment Funds (“AIFs”) and Venture Capital Funds (“VCFs”). Vide the Circular, the limit of overseas investment by AIFs and VCFs has been extended from USD 500 million to USD 700 million.

The Circular also mentions following disclosures which are to be done by AIFs / VCFs in order to monitor the utilization of overseas investment limits:

  • AIFs/ VCFs shall report the utilization of the overseas limits within 5 working days of such utilization on SEBI intermediary portal (https://siportal.sebi.gov.in); and
  • In case an AIF / VCF has not utilized the overseas limit or a part of it, granted to them within a period of 6 months from the date of SEBI approval (“validity period”), the same shall be reported within 2 working days after expiry of the validity period.