Sebi issues borrowing norms for Category-I & II AIFs

Capital markets regulator the Securities and Exchange Board of India (Sebi) has issued guidelines for borrowing by Category-I and Category-II alternative investment funds (AIFs).Under the new rules, the AIFs will be allowed to avail loans to meet temporary funding needs and day-to-day operational requirements for up to 30 days. The new mandates also cap the number of times that AIFs can borrow in a year at four and up to 10% of total investible funds.