Sebi's merchant banker order may stretch new AIF timelines, says industry

Regulator's notification has limited international precedent and is unnecessary, say analysts.

A new regulatory requirement for merchant bankers to review alternative investment fund (AIF) documents could delay fund-raising further amid a pandemic slow-down.
 

An asset manager provides investors details about a new AIF through a private placement memorandum (PPM). It contains fees, investment strategy and other important information. The Securities and Exchange Board of India (Sebi) has asked that merchant bankers vet these documents. The process is similar to how bankers look at details in initial public offer (IPO) documents when a company first sells shares to the public.

The move has limited international precedent and is seen to introduce cause