Business Standard

12 more alternative investment funds allowed by Sebi

As on August 31, a total of 20 applications were pending with Sebi for registration as AIFs

Related News

Market regulator, the Securities and Exchange Board of India (Sebi), has allowed 12 entities to set up (AIFs), a newly created class of pooled-in investment vehicles for real estate, and hedge funds, in the last two months.

The 12 AIFs that have been registered with since October 10 included India Realty Fund, Dar Mentorcap Film Fund, Capaleph Indian Millennium Small & Medium Enterprises Fund and Capaleph Indian Millennium Private Equity Fund.

Sebi had already allowed nine AIFs to set up shops in the country. As on August 31, 2012, a total of 20 applications were pending with Sebi for registration as AIFs.

The regulator had notified in May this year the guidelines for a new class of market intermediaries named AIFs, which are basically funds established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy.

Sebi in August decided that the promoters of listed companies can offload 10 per cent of equity to AIFs such as such as SME Funds, Infrastructure Funds, PE funds and Venture Capital Funds registered with the market regulator to attain minimum 25 per cent public holding.

Under Sebi guidelines, AIFs can operate broadly in three categories. The Sebi rules apply to all AIFs, including those operating as private equity funds, funds and hedge funds, among others.

The Category-I AIFs are those funds that get incentives from the government, Sebi or other regulators and include Social Venture Funds, Infrastructure Funds, Venture Capital Funds and SME Funds.

The Category-III AIFs are those trading with a view to make short-term returns and include hedge funds, among others. The Category-II AIFs can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include PE funds, debt funds or fund of funds, as also all others falling outside the ambit of two other categories.

Among other registered AIFs in the past two months are — Edelweiss Stressed & Troubled Assets Revival Fund Trust, IIFL Private Equity Fund, IIFL Opportunities Fund, IIFL Venture Fund, Quant First Alternate Investment Trust, Fulcrum Venture India Trust, Kedaara Capital and Arcus Opportunities Fund.

Read more on:   
|
|
|
|
|
|
|

Read More

2013: Another year of steady rise

The domestic equity market in 2013 is likely to repeat the rise in 2012 and move up about 20 per cent. While reversal of the interest rate cycle ...

Quick Links

 

Market News

Markets open flat; Nifty defends 8,150

L&T, Dr Reddys Labs, Tata Steel, Wipro and M&M among the losers in early trades

About 30% apple crop perishes in J&K floods

The Jammu & Kashmir (J&K) floods have left apple growers and traders in the Kashmir valley high and dry. J&K is the largest grower ...

Antwerp Diamond Bank closure: Diamond traders fear liquidity crunch

In India, ADB is learnt to have had direct financing worth $200-230 mn through its Indian branch

Commodities drop to 5-yr low globally

Commodities extended declines to a five-year low on speculation the strengthening dollar and signs of slowdown in China will curb demand for raw ...

Can Chandrababu Naidu start bauxite mining in AP?

In his two earlier stints as chief minister of Andhra Pradesh, Chandrababu Naidu had turned the once sleepy capital city of Hyderabad into a ...

Back to Top