Investor Presentaiton

AIF Structure in GIFT IFSC AIFs in IFSC - Regulatory Relaxations Borrowing and Leverage - Permission to borrow funds and engage in leveraging activities subject to: Consent of investors Disclosure in PPM - Max. leverage, methodology for calculation of leverage Co-investment Investment Diversification norms • • • - - Comprehensive risk management framework appropriate to the size, complexity and risk profile of the AIF Co-investment through segregated portfolio by issue of separate class of units subject to: Terms not to be more favorable than common portfolio of AIF Disclosure in PPM regarding creation of segregated portfolio AIF in IFSC is permitted to invest in AIF registered with SEBI in India, alongside other permissible investments Restriction with respect to investment up to 10% in single investee company (for Cat III AIF) and 25% (for Cat I and Cat II AIF) to not apply provided: Investments are in line with risk appetite of investors Disclosure in PPM Indian party making sponsor contribution under automatic route Sponsor contribution under automatic route of RBI • Recently, RBI has issued a circular permitting remittance by Indian party towards sponsor contribution to AIF in IFSC • Any sponsor contribution from sponsor Indian Party to AIF in IFSC, as per the laws of host jurisdiction, shall be treated as ODI • Accordingly, Indian Party can set up AIF in IFSC, under automatic route provided it complies with Regulation 7 of the ODI Regulation Conditions prescribed under regulation 7 of the ODI Regulations • Indian party has earned net profit during the preceding 3 financial years from financial services activities • Indian party is registered with the regulatory authority in India for conducting financial services activities • Indian party has obtained approval from regulatory authorities in India and abroad, for venturing into such financial sector activity • Indian Party has fulfilled the prudential norms relating to capital adequacy as prescribed by the concerned regulatory authority in India Khandhar Mehta & Shah | Chartered Accountants fin 37

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