Sebi proposes tighter disclosure, performance reporting norms for AIFs

The benchmarking report would have to be provided along wherever the performance of the AIF is disclosed

After suggesting wide-ranging changes for portfolio management services (PMS), the Securities and Exchange Board of India (Sebi) on Thursday proposed a set of new norms to in a bid to firm up disclosure and performance reporting standards for alternative investment funds (AIFs).

In its consultation paper, the market watchdog proposed setting up of a benchmarking agency to show comparable returns of various AIFs and standardising private placement memorandum (or offering document), which informs investors about various aspects of an AIF, such as fees, conditions or limits on redemption, investment strategy, conflict of interest, and manner of winding up the AIF.