Investment Funds: Monthly Digest

Special Situation Funds: An Attempt to Revolutionalize Stressed Assets Space

This article was originally published in Indian Venture and Alternate Capital Association blog on February 15, 2022.

SUMMARY

Dibya Behera, Shivam Ahuja and Arjun Gupta analyse the Securities and Exchange Board of India (“SEBI”)’s recent move of introducing Special Situation Funds and their effects on reviving the stressed assets space in their recent piece published in Indian Venture and Alternate Capital Association blog on February 15, 2022.

SEBI in an attempt to address the stressed assets woes of the banking and finance industry has introduced a new sub-category of Alternative Investment Fund (“AIF”) called ‘Special Situation Fund’ (“SSF”) under Category I Alternative Investment Funds under the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”). In our piece titled “Special Situation Funds: An attempt to revolutionalize Stressed Assets space”, we analyse the viability of using AIF as a source of risk capital to deal with the issue of stressed loans, key features of the SSFs, investment considerations and issues associated with SSFs.

For complete article, please click here.

– Dibya Behera, Shivam Ahuja & Arjun Gupta

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