Venture Intelligence (TSJ Media Pvt. Ltd.)
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Sebi allows AIFs to pledge shares in cos that invest in infra sector
Capital markets regulator Securities and Exchange Board of India (Sebi) has allowed AIFs (alternative investment funds) to pledge their shares in investee companies in the infrastructure sector.Category I and Category II AIFs may create an encumbrance on equity of an investee company, which is in the business of development, operation or management of projects in any of the infrastructure sub-sectors. The borrowings must be used for the specified purposes, and the duration of encumbrances should not exceed the scheme's tenure.Earlier, pledging of securities held by an AIF in investee companies for loans availed of by the investee companies violated the AIF Regulations.In a separate circular, the regulator has provided more flexibility to AIFs and their investors to deal with unliquidated investments of their schemes.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.