THE ECONOMIC TIMESSebi Seeks

Approval For Foreign Funds

Into AIFsSubmitted To:-Dr. Navita Nathani

Submitted By:-Nikhi JainRoll No. 27

Market regulator Sebi has asked the government to allow foreign investments into alternative investment funds and also downstream investments by them under the foreign direct investment policy framework.

FDI policy guidelines specify the norms for venture capital funds, the AIF regime has superseded it with substantial changes.

The regulator had notified in May, 2012 the guidelines for AIFs

Contd....AIFs funds are basically funds established in

India for the purpose of pooling in capital from Indian and foreign investors for further investments.

Sebi has also allowed promoters of listed companies to offload up to 10% of equity to registered AIFs to attain minimum 25% public holding.

Contd....

Experts say policymakers need to make it clear whether AIFs were also intended as vehicles to attract foreign investment.

Some experts, however, say that the provision valid for venture capital funds in the FDI policy should continue and there is no need for any clarification.