Firm Matters

Khaitan & Co advised HarbourFront India Investment Advisory LLP in connection with its engagement with the Reserve Bank of India (RBI) regarding the proposed in-specie distribution of assets by a Category II Alternative Investment Fund (AIF), registered with the Securities and Exchange Board of India under the SEBI (Alternative Investment Funds) Regulations 2012, to a non-resident investor.

The mandate involved complex regulatory considerations and extensive engagement with the RBI over several rounds of discussions.

Following such engagement, the RBI clarified that the proposed in-specie distribution did not require its prior approval and could be undertaken under the automatic route, subject to compliance with the applicable requirements under the Foreign Exchange Management Act 1999, and the rules and regulations framed thereunder.