Apex PE-VC body seeks govt's help to ease AIF curbs

AIFs in India are rejecting 'early exit' requests from banks and finance companies due to new rules. They are now considering how to handle these investors as they default on 'capital calls' from funds. AIFs may impose penalties on banks and NBFCs falling short of their original commitments. They may also cap investments, make exceptions for affected investors, and preserve relationships. The RBI's recent regulations conflict with the AIF regulatory regime, creating a need for urgent resolution. Investors and AIFs are exploring ways to avoid the regulatory restrictions.

At a meeting with select industry persons and domain experts a fortnight ago, senior officials of the Securities and Exchange Board of India (Sebi) said new regulations are being explored to monitor the investments in AIFs, two persons aware of the deliberations told ET.

To get LTCG benefit, 90% of FoF’s assets should be equity shares via ETFs.

Simplifying your investments involves aligning them with your financial goals. The process of streamlining your investment portfolio can be time-consuming, as it requires several steps to initially declutter and subsequently consolidate your mutual fund holdings.

Mumbai, Dec 19 (PTI) In a move to curb “evergreening” of loans, the Reserve Bank on Tuesday barred banks and NBFCs from investing in any scheme of Alternative Investment Funds (AIFs) having investment in companies that have taken loan from the lenders concerned in the past 12 months. Banks and NBFCs, which are Regulated Entities […]

As the venture ecosystems shifts and evolves, AIFs stand to gain from changes.

India's Securities and Exchange Board has unveiled a series of reforms for the Alternative Investment Fund sector, which includes new disclosure norms and direct investor access. The reforms, which will come into effect on 1 May, aim to increase transparency, curb mis-selling and enable direct investor access without intermediaries. AIFs require a minimum investment amount of INR10m ($136,000) and are predominantly driven by the distribution model. The AIF sector grew at the fastest rate of 50% CAGR during 2017-2022, as per a Crisil report.

The Reserve Bank's December circular prohibiting regulated entities such as NBFCs from investing in AIFs having downstream investments either directly or indirectly in a debtor company of the entities had stressed investors. The rules also required entities to liquidate their investment within 30 days from the date of downstream investment or make 100% provision.

India Business News: NEW DELHI/MUMBAI: The RBI's recent regulatory actions on regulated entities investing in alternatives investment funds (AIFs) are meant to check everg.

The Securities & Exchange Board of India (Sebi) on Monday asked the custodians of these funds to state the names of investee companies, quantum of each investment, investible surplus on the day of the investment, and whether the investee company is an 'associate' of the fund, among other things.