Explain the applicability and compliance requirements for investments from countries sharing land borders with India through Alternative Investment Funds (AIFs) as per the SEBI Circular dated October 08, 2024?

To ascertain whether investors from countries sharing land border with India are investing in Indian companies through AIFs, the following is specified - Applicability: For every scheme of AIFs where 50% or more of the corpus of the scheme is contributed by investors - who are citizens of/are from/are situated in a country which shares land border with India, or, whose beneficial owners, as determined in terms of sub-rule (3) of Rule 9 of the Prevention of Money-laundering (Maintenance of Records) Rules, 2005, are citizens of/are from/are situated in a country which shares land border with India. Compliance: Necessary due diligence as per the implementation standards formulated by Standard Setting Forum for AIFs (SFA), shall be carried out prior to making any investment. Upon carrying out the necessary due diligence, such scheme shall report details of its investment, which would result in the scheme holding 10 percent or more of equity/equity-linked securities issued by an investee company (on a fully-diluted basis), to its custodian within 30 days of investment, in the format as may be specified by SFA. Custodians shall compile such information received from AIFs on a monthly basis and report to SEBI within 10 working days from the end of the month. For schemes of AIFs covered above, shall also report to their custodians on or before April 07, 2025 in the format specified by SFA, details of their existing investments where the scheme holds 10% or more of equity/equity-linked securities issued by an investee company (on a fully-diluted basis). The custodians shall compile and share the information with SEBI on or before May 07, 2025.