Sebi to allow Category II AIFs to invest in unlisted, lower-rated debt securities

Capital markets regulator Securities and Exchange Board of India (Sebi) has proposed to ease investment norms for Category II Alternative Investment Funds (AIFs), allowing them to invest in listed debt securities with a credit rating of 'A' or below.Sebi has proposed “Category II AIFs to invest more than 50% of their total investible funds in unlisted securities, and/or listed debt securities having credit rating 'A' or below, directly or through investment in units of other AIFs".