Brief Overview:

Existing AIFs or their schemes can convert to Accredited Investor-only (AI-only) or Large Value Fund (LVF) structures after obtaining unanimous positive consent from all investors and fulfilling SEBI-prescribed conditions.

Technical Details:

Key Highlights

1) Existing AIFs may convert to AI-only or LVF schemes.

2) Requires unanimous investor consent.

3) Add suffix post conversion – “AI only fund” or “LVF”.

4) Accredited status of investor at onboarding stays valid for the scheme’s life.

5) LVFs- Exempted from standard PPM template or annual audit required without investor waivers.

Takeaways:

SEBI’s amendment to the AIF Regulation eases regulatory obligations for high-value accredited funds, ensuring investor protection through consent requirements & transparent naming.

For further details, please see:

⁠SEBI | Modalities for AI only schemes and Large Value Funds 

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