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SEBI amends rules relating to AIFs
The board of Securities and Exchange Board of India (Sebi) has approved amendments to the regulations for alternative investment funds (AIFs). As per the amendments to SEBI (Alternative Investment Funds) Regulations, 2012, Category I AIF - Venture Capital Funds (VCFs) will have to invest at least 75% of investable funds in unlisted equity shares and equity linked instruments of venture capital undertakings or in companies listed or proposed to be listed on an SME exchange or SME segment of an exchange. The existing investment restrictions on the residual portion of investable funds of VCFs have been done away with. The minimum amount of grant of INR 25 lakh stipulated for Category I AIFs – Social Venture Funds shall not apply to grants received from accredited investors. AIFs can also issue partly paid-up units to investors to represent the portion of committed capital invested. The regulator has also stipulated that AIFs will have to file a private placement memorandum with SEBI through registered merchant bankers.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.