Section 23 in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
23. Valuation.
(1)The Alternative Investment Fund shall provide to its investors, a description of its valuation procedure and of the methodology for valuing assets.(2)Category I and Category II Alternative Investment Funds shall undertake valuation of their investments, atleast once in every six months, by an independent valuer appointed by the Alternative Investment Fund:Provided that such period may be enhanced to one year on approval of atleast seventy-five percent of the investors by value of their investment in the Alternative Investment Fund.(3)Category III Alternative Investment Funds shall ensure that calculation of the net asset value (NAV) is independent from the fund management function of the Alternative Investment Fund and such NAV shall be disclosed to the investors at intervals not longer than a quarter for close ended Funds and at intervals not longer than a month for open ended funds.
