Sebi rearranges AIF rules to support startups

Published on May 04, 2015 13:27:50 PM

To support the startup ecosystem in India, Securities and Exchange Board of India (SEBI) is rearranging rules on alternative investment funds (AIFs).

AIF is privately pooled investment fund which doesn’t fall under the jurisdiction of any regulatory agency in India and includes venture Capital Fund, hedge funds, private equity funds, commodity funds, Debt Funds, infrastructure funds.

As part of it, Sebi is forming a panel of seven member high-power committee and Infosys founder NR Narayana Murthy may possibly head this committee.

This provides a platform for startups to raise private capital efficiently as well as put in place measures for AIFs.

The regulator has separate advisory committees covering different segments of the capital markets, such as primary market, secondary market, mutual funds and corporate bonds but doesn't have one on AIFs, which have emerged as a dominant force in India, said one of the regulatory officials.

Renuka Ramnath of Multiples Alternate Asset Management, Ajay Piramal of the Piramal Group and executives belonging to KKR and Malabar Investments may likely to be the part of AIF panel.