MUMBA: In order to ensure compliance with the Private Placement Memorandum (PPM), SEBI had vide its circular dated 5 February, 2020 prescribed an annual audit. The findings of the audit along with any corrective steps are required to be communicated to the Trustee, the Manager and SEBI. The audit is not required for angel funds and AIFs / Schemes with minimum commitment of INR 70 crore from each investor, subject to obtaining a waiver from the investors in the prescribed form.
SEBI has clarified vide circular dated 12 June, 2020 that the finding of audit of compliance with PPM needs to be submitted within 6 months from the end of the financial year. However for the financial year 2019-20, the audit report needs to be submitted by 31 December, 2020. Further, the audit need not be conducted for AIFs which have not raised any funds from their investors. Such AIFs need to submit a certificate from a Chartered Accountant to the effect that no funds have been raised.
