Capital markets regulator allows PE and VC funds to defer filings
Photo Credit: Reuters

The Securities and Exchange Board of India (SEBI) has allowed private equity and venture capital funds to defer submission of their regulatory filings for March and June quarters by September-end.

“SEBI, in receipt of a representation from the Industry, has extended timelines in view of the ongoing second wave of the pandemic,” the capital markets regulator said.    

The regulator had provided similar relief to funds last year immediately after the outbreak of the pandemic.

Category I and II alternative investment funds (AIFs) -- or private equity, venture capital and private debt funds --  have to file quarterly compliance reports on the amount of capital invested, raised and dry powder available. Category III AIFs, which are allowed to take leverage, have to file monthly compliance reports.  

Earlier this year, SEBI overhauled reporting standards for AIFs making them more detailed while increasing the compliance burden on funds.  

This will give a much needed breather to fund managers, Tushar Sachade, partner, PriceWaterhouse & Co LLP, and member of regulatory affairs committee at Indian Private Equity and Venture Capital Association (IVCA), had said.  

But Sachade noted that many funds are also seeking relaxation in fund life as Covid-19 has delayed portfolio exits.  

Private equity and venture capital firms typically need more than 75% of their investors to approve an extension of a fund's life. The typical fund duration is around 10 years.

“SEBI should consider this request of the industry subject to investors’ approval,” Sachade had said.

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