Legal Implications of the RBI Circular on Alternative Investment Funds

Tuesday, January 16 (04:00 PM – 05:00 PM IST)

 

INTRODUCTION

Join our experts as they discuss the industry impact of the recent Reserve Bank of India (“RBI”) Circular dated December 19, 2023 on investments by regulated entities in AIFs (“Circular”).

The Circular, among other things, prevents all RBI regulated entities such as regulated banks, financial institutions and non-banking financial companies from holding units of AIFs which have invested in a “debtor company” of such regulated entities. A debtor company is one which has been a debtor or has an investment exposure from a regulated entity at any time during the preceding 12 months.

The Circular has raised concerns among both, AIFs and regulated entities (in that order in terms of severity).

In the case of some AIFs, the Circular has brought fundraising to a standstill. The language of the law leads to consequences which may not have been intended.

Some of the key issues for discussion are:

  • Overview of the changes introduced by the Circular

  • Operational difficulties created by the Circular for AIFs

  • Effect on LPs

  • Contractual issues arising from the Circular – force majeure and frustration of contract

  • Change in law vis-à-vis existing contracts

  • Recommendations

We look forward to your participation.

Flow of the session

04:00 PM to 04:45 PM (IST)

Panel Session

04:45 PM to 05:00 PM (IST)

Audience Q&A

Speakers:

Nandini Pathak

Leader, Funds Formation

Nishith Desai Associates

 

Dr. Dhruv Janssen-Sanghavi

Leader, International Tax

Nishith Desai Associates

 

Ashish Kabra

Head, Singapore Office

Nishith Desai Associates

 

Arvind Mathur

Founder

Indian Limited Partners Association