Special Situation Funds can be offered by registered Fund Management Entity in IFSC, which of the following conditions govern them? (i) Only close ended SSFs are permissible, with minimum tenure of 3 years (ii) Extension of the tenure of the close ended special situation fund may be permitted up to five (5) years (iii) A special situation fund shall be constituted in IFSC as a company or LLP or Trust under the applicable laws of India.

Ø  SSFs can be launched by a registered FME Ø  SSFs are permitted to acquire special situation assets, which includes: - Stressed loan available for acquisition - Security Receipts (SRs) issued by an Asset Reconstruction Company (ARC) registered with the RBI - Securities of investee companies (i)            whose stressed loans are available for acquisition, (ii)             against whose borrowings, SRs have been issued by an ARC, (iii)          whose borrowings are subject to corporate insolvency resolution process, (iv)           who has continuing default of loans, subject to conditions Ø  Only close ended SSFs are permissible, with minimum tenure of 3 years Ø  Extension of the tenure of the close ended special situation fund may be permitted up to two (2) years Ø  subject to approval of two-thirds (2/3rd) of the investors by value: Ø  Provided that any further extension beyond two (2) years may be considered subject to express consent of the investors and exit opportunity shall be provided to other investors. Ø  Scheme corpus, eligible investors, investment conditions may be specified by the IFSCA Ø  Leverage not permissible except to meet day to-day operational requirements Ø  A special situation fund shall be constituted in IFSC as a company or LLP or Trust under the applicable laws of India.