Eligible FMEs and Filing of Placement Memorandum

55. (1) A Registered FME may launch a special situation fund through a private placement memorandum by filing the memorandum with the Authority along with the applicable fees in the manner as specified by the Authority (2) The filing of scheme documents for restricted schemes shall be under a green channel whereby the schemes filed shall be open for subscription by investors immediately upon communication from the Authority to the FME that the placement memorandum has been taken on record: Provided that the Authority may, at any stage, offer its comments which shall suitably be incorporated by the FME in the placement memorandum. Explanation.- For the purpose of the Income Tax Act, 1961, the communication received by the FME from the Authority that the placement memorandum has been taken on record, shall be construed as Certificate of Registration. (3) The validity of the placement memorandum for launch of the scheme shall be twelve (12) months from the date of communication from the Authority, that the placement memorandum has been taken on record, during which period the FME shall declare the first close of the scheme by achieving at least the minimum size of corpus as specified under sub-regulation (1) of regulation 58: Provided also that if a FME fails to achieve the minimum size of corpus as specified under sub-regulation (1) of regulation 58 within the specified time, it shall have the one-time option to extend the validity of the placement memorandum for a further period of 6 months by paying 50 per cent. (50%) of the fee as applicable for filing of a fresh scheme. (4) The FME shall ensure that any material changes in the placement memorandum are informed to the Authority immediately.