Sebi amends AIF rules to allow co-investment via portfolio management route

Markets regulator Sebi has amended the regulatory regime governing alternative investment funds (AIFs), to facilitate co-investment through the portfolio management route. Co-investment means investment made by a manager or sponsor or investor of Category-I and -II AIFs in investee companies where such category of AIFs makes investment. The regulator said the terms of co-investment in an investee company by a manager or sponsor or co-investor, will not be more favourable than the terms of investment of the AIF. It further said the terms of exit from the co-investment in an investee company, including the timing of exit, will be identical to the terms applicable to that of exit of the AIF.