#PrivatePlacementMemorandum #PPM #PPMAudit #AlternativeInvestmentFunds #AIFCompliance #SEBIRegulations #InvestmentReporting #FinancialCompliance #AIFTransparency #FundRaisingRegulations Private Placement Memorandum (PPM) & PPM Audit What is a Private Placement Memorandum (PPM)? When a company or fund seeks to raise capital through a private securities offering, they provide prospective investors with a legal document called a Private Placement Memorandum (PPM). This document serves as a comprehensive guide, detailing the investment opportunity, associated risks, and essential information required for investors to make informed decisions. PPMs are particularly significant in private investments, as they substitute the detailed disclosures mandated in public offerings. What is a PPM Audit? A PPM audit report is a document that verifies an Alternative Investment Fund’s (AIF) compliance with the terms outlined in its Private Placement Memorandum (PPM). Purpose of PPM Audit The primary objectives of a PPM audit include: When to Prepare the PPM Audit Report? The PPM audit report must be prepared at the end of each financial year. When to Submit the Report? The report must be submitted within six months from the end of the financial year. Where to Find the Standard Format? As per SEBI’s circular dated 18th April 2024, the standard reporting format shall be made available on the website of AIF Associations, under SFA, within two working days of the circular’s issuance. Exemptions from PPM Audit Requirement Certain categories of AIFs are exempt from submitting a PPM audit report: Conclusion At Betafin Partners, we understand the critical role that compliance plays in maintaining the integrity and efficiency of Alternative Investment Funds. A well-executed PPM audit not only ensures regulatory adherence but also fosters investor confidence and operational transparency. Our team of experienced professionals is dedicated to assisting AIFs in meeting their reporting obligations seamlessly, addressing potential compliance concerns proactively, and navigating the evolving regulatory landscape with confidence. By partnering with us, AIFs can streamline their audit processes and focus on their core investment strategies while ensuring compliance with SEBI regulations.