TRANSPARENCY :

All Alternative Investment Funds shall ensure transparency and disclosure of information to investors on the following:

(a) financial, risk management, operational, portfolio, and transactional information regarding fund investments shall be disclosed periodically to the investors;

(b) any fees prescribed to the Manager or Sponsor; and any fees charged to the Alternative Investment Fund or any investee company by an associate of the Manager or Sponsor shall be disclosed periodically to the investors;

(c) any inquiries/ legal actions by legal or regulatory bodies in any jurisdiction, as and when occurred;

(d) any material liability arising during the Alternative Investment Fund’s tenure shall be disclosed, as and when occurred;

(e) any breach of a provision of the placement memorandum or agreement made with the investor or any other fund documents, if any, as and when occurred;

(f) change in control of the Sponsor or Manager or Investee Company;

(g) Alternative Investment Fund shall provide at least on an annual basis, within 180 days from the year end, reports to investors including the following information, as may be applicable to the Alternative Investment Fund:-

A. financial information of investee companies.

B. material risks and how they are managed which may include:

(i) concentration risk at fund level;

(ii) foreign exchange risk at fund level;

(iii) leverage risk at fund and investee company levels;

(iv) realization risk (i.e. change in exit environment) at fund and investee company levels;

(v) strategy risk (i.e. change in or divergence from business strategy) at investee company level;

(vi) reputation risk at investee company level;

(vii) extra-financial risks, including environmental, social and corporate governance risks, at fund
and investee company level.

(h) Category III Alternative Investment Fund shall provide quarterly reports to investors in respect of clause

(g) within 60 days of end of the quarter;

(i) Any significant change in the key investment team shall be intimated to all investors;

(j) Alternative Investment Funds shall provide, when required by SEBI, information for systemic risk purposes (including the identification, analysis and mitigation of systemic risks).