MONITORING OF INVESTMENTS IN ALTERNATIVE INVESTMENT FUND

IRDAI vide Circular bearing no. IRDAI/F&I/CIR/INV/139/06/2023 dated June 28, 2023 has drawn reference to its Circular bearing no. IRDA/F&I/CIR/INV/172/08/2013 dated August 23, 2013 which permitted insurers to invest in Category I and Category II Alternative Investment Fund (AIF) as a part of “Other Investments”.

IRDAI intends to closely monitor the exposure of Insurers in AIFs, hence IRDAI has advised the Insurers to take following steps:

1. The Net Asset Value of AIFs shall be declared on quarterly basis. Further the Insures shall submit quarterly return for Investments in AIFs as per the format prescribed within 15 days from end of quarter.

2. The rollover of Investments in AIFs should be approved by the Board/Investment Committee.

Reference:

SEBI (Alternative Investment Funds) Regulations, 2012

“3. Registration of Alternative Investment Funds

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(4) Alternative Investment Funds shall seek registration in one of the categories mentioned hereunder and in case of Category I Alternative Investment Fund, in one of the sub-categories thereof:

(a)Category I :Alternative Investment Fund which invests in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include venture capital funds, SME Funds, social venture funds, infrastructure funds and such other Alternative Investment Funds as may be specified;

(b) Category II : Alternative Investment Fund which does not fall in Category I and III and which does not undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted in these regulations;”

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Source category: IRDAI

Attachments

• /2023/225_circular_on_Monitoring_of_Investments_in_Alternative_investment_Fund_(2).pdf