Ease of doing business: Sebi to release standard format for AIFs' PPM Audit Report in two days

The PPM audit reports should be submitted to SEBI by AIFs online on the SEBI Intermediary Portal (SI Portal) in this format.

A standard format for alternative investment funds (AIFs) to submit the audit of their compliance with the terms of their private-placement memorandums (PPMs) will be issued in two days.

PPMs are documents that inform investors about basic details of an AIF.

A circular issued by the Securities and Exchange Board of India (Sebi) said, "The said reporting format shall be hosted on the websites of the AIF Associations which are part of SFA (Standard Setting Forums for AIFs) within two working days of issuance of this circular."

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It added, "The associations shall assist all AIFs in understanding the reporting requirements and in clarifying or resolving any issues which may arise in connection with reporting to ensure accurate and timely reporting."

It is mandatory for AIFs to carry out an annual audit of compliance with the terms of their PPMs. AIFs are required to submit Annual PPM Audit Reports to the Trustee or Board of Directors or Designated Partners of the AIF, Board of directors or Designated Partners of the Manager and SEBI, within six months from the end of the Financial Year.

In order to have uniform compliance standards and for ease of compliance reporting, standard reporting format for PPM Audit Report applicable to various categories of AIF has been prepared in consultation with SFA, said the Sebi circular.

The PPM audit reports should be submitted to SEBI by AIFs online on the SEBI Intermediary Portal (SI Portal) in this format.

This reporting format will be reviewed periodically by pilot SFA in consultation with SEBI, to keep pace with the fast-changing landscape, said the circular.

In case of any revisions in the reporting format, revised format will be made available on websites of the Associations which are part of SFA.

On April 5, the market regulator proposed another change for ease of doing business for AIFs. It released a draft circular that proposed that any change in PPM be directly filed with the regulator and not be routed through the merchant banker.