SEBI in an attempt to improve transparency and investor awareness, has prepared an investor charter (‘Investor Charter’) provided in its Circular dated December 10, 2021 (‘Investor Charter Circular’). The Investor Charter includes relevant information about the various activities pertaining to AIFs including details of services provided to investors, responsibilities of investors, and grievance redressal mechanisms. All AIFs are now required to take necessary steps to publish the Investor Charter to the notice of their investors either via (i) disclosures in the private placement memorandum (‘PPM’) for new schemes; or (ii) an e-mail to the registered e-mail of investors for existing schemes.

The Investor Charter Circular also mandates AIFs to disclose data on investor complaints received against AIFs and each of their schemes and their redressal status in the format specified in the Circular. Such disclosure will be made by either (i) including a separate chapter in the PPM for new schemes; or (ii) updating the PPM within one month at the end of each financial year for existing schemes. Further, AIFs are required to maintain such data on investor complaints and compile the same within seven days from the end of each quarter. The provisions of this Circular will come into effect from January 01, 2022.