SEBI Circular on Infrastructure Debt Fund

CIR / IMD / DF / 7 / 2013 April 23, 2013

All Mutual Funds/Asset Management Companies
Trustee Companies/Boards of trustees of mutual funds

Sir / Madam,

Sub: Circular on Infrastructure Debt Fund Amendments to SEBI (Mutual Funds) Regulations, 1996

1. Please find enclosed a copy of the gazette notification No. LAD-NRO/GN/2013-14/03/5652 dated April 16, 2013, pertaining to the Securities and Exchange Board of India (Mutual Funds) (Amendment) Regulations, 2013 for your information and implementation.

Placement Memorandum

2. Private Placement to less than 50 investors has been permitted as an alternative to New Fund Offer to the public, in case of Infrastructure Debt Funds (IDF). In case of private placement, the mutual funds would have to file a Placement Memorandum with SEBI instead of a Scheme Information Document and a Key Information Memorandum. However, all the other conditions applicable to IDFs offered through the NFO route like kind of investments, investment restrictions, etc. would be applicable to IDFs offered through
private placement.

3. In terms of regulation 49-OA of the SEBI (Mutual Funds) Regulations, 1996, the Placement Memorandum shall be filed with SEBI as per the format prescribed at Annexure.

4. The Asset Management Companies shall ensure that the Placement Memorandum is uploaded on their respective websites after allotment of units, and on the website of such recognized Stock Exchange, where it is proposed to be listed, at the time of listing of the

FIIs which are long term investors

5. The universe of strategic investors in the IDF has been expanded to include, inter alia, FIIs registered with SEBI which are long term investors subject to their existing investment limits. With reference to regulation 49L of the SEBI (Mutual Funds) Regulations, 1996 the following categories of FIIs are designated as long term investors only for the purpose of IDF:

a. Foreign Central Banks
b. Governmental Agencies
c. Sovereign Wealth Funds
d. International/Multilateral Organizations/ Agencies
e. Insurance Funds
f. Pension Funds

Investments by the IDF scheme

6. With reference to regulation 49P (1) of the SEBI (Mutual Funds) Regulations, 1996, it may be noted that the investments in bank loans shall be made only through the securitization mode.

This circular is issued in exercise of powers conferred under section 11(1) of the Securities and Exchange Board of India Act, 1992, read with the provisions of regulation 77 of the SEBI (Mutual Funds) Regulations, 1996 to protect the interests of investors in securities and to promote the development of and to regulate the securities market.

Yours faithfully,

General Manager
Tel no. 022-26449360

Annexure available for download


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