Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.
Indian funds petition Sebi to ease overseas investment cap for AIFs
Multiple Indian funds have urgently petitioned the Securities and Exchange Board of India (Sebi) to ease the overseas investment cap for Alternative Investment Funds (AIF) to avoid missing out on deals. Investors awaiting approvals for their deals include Blume Ventures, Exfinity Ventures, Ideaspring Capital, Pi Ventures, and 9Unicorns. Overseas investments by Alternative Investment Funds (AIF) cumulatively hit the USD 1.5 Billion threshold just last week. Sebi allows 25% of an AIF's investible corpus to be invested overseas at an individual level with a USD 1.5 Billion cap at an aggregate level for all AIFs. This threshold was set in 2015 at USD 500 million and was raised in 2018 to USD 750 million and doubled to USD 1.5 billion in May 2021. The markets regulator is also discussing raising the cap with the Reserve Bank of India (RBI), but there appears little appetite within the central bank because of the adverse impact it may have on the rupee which has weakened by 6% this year.
Want to receive such news items in your inbox? Click Here to sign up for a trial.
Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.