Explain the provisions relating to "Special Situation Fund" notified in SEBI (Alternative Investment Funds) (Amendment) Regulations, 2022.

Answer 6(a) Chapter III-B on Special Situation Fund was inserted vide SEBI (Alternative Investment Funds) (Amendment) Regulations, 2022. Special Situation Fund means a Category 1 Alternative Investment Fund that invests in special situation assets in accordance with its investment objectives and may act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016. The provisions of this Chapter shall apply to special situation funds and schemes launched by such special situation funds. Investment in special situation funds Each scheme of a special situation fund shall have a corpus as may be specified by the SEBI. The special situation fund shall accept from an investor, an investment of such value as may be specified by the SEBI. The special situation fund shall not accept investments from any other Alternative Investment Fund other than a special situation fund. Investment by special situation funds Special situation funds shall invest only in special situation assets and may act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016. However, the special situation fund shall not invest in, its associates; or the units of any other Alternative Investment Fund other than the units of a special situation fund; or units of special situation funds managed or sponsored by its manager, sponsor or associates of its manager or sponsor. Any investment by a special situation fund in the stressed loan acquired under clause 58 of the Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 as amended from time to time shall be subject to lock-in period as may be specified by the SEBI. In this context, SEBI vide its Circular No. SEBI/HO/IMD I/DF6/P/CIR/2022/009 dated January 27, 2022 has specified the following: Each scheme of SSF shall have a corpus of at least ₹ 100 crore. SSF shall accept an investment of value not less than ₹ 10 crore from an investor. In case of an accredited investor, the SSF shall accept an investment of value not less than ₹ 5 crore. Further, in case of investors who are employees or directors of the SSF or employees or directors of the manager of the SSF, the minimum value of investment shall be ₹ 25 lakh rupees. SSF intending to act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016 shall ensure compliance with the eligibility requirement provided thereunder.