More time to submit views on Murthy panel suggestions on AIF

Sebi today gave more time to stakeholders to submit their views on N R Murthy-led high level panel's recommendations on promoting angel investments and extending more tax benefits to all kinds of Alternative Investment Funds (AIF).
Deadline for public comments has now been extended to January 16 next year as Sebi seeks to elicit broader views to put in place a more streamlined and friendly regime. The earlier deadline was ending today.
"Based on the representations received from various bodies/associations/ etc, seeking extension of the timeline to furnish the comments/suggestions, it has been decided to grant the time till January 16, 2017 for submitting the comments," Sebi said in a statement.

The regulator had constituted the Alternative Investment Policy Advisory Committee (AIPAC) standing committee in March 2015 to prepare a new framework for start-ups and alternative investments. It submitted its first set of recommendations in January this year.
In its second report submitted to Sebi, the panel has suggested extending tax pass-through status to category III AIFs, in addition to category I and II funds.
The panel has suggested greater mandatory disclosure in private placement of such funds.

The regulator has already taken necessary steps on some suggestions and these measures include relaxation of some rules for angel funds and lowering of minimum threshold investment, which were approved by its board last month.

Under Sebi guidelines, AIFs can operate broadly in three categories and the rules apply to all including those operating as private equity funds, real estate funds and hedge funds, among others.
Currently, as many as 268 AIFs are registered with Sebi. Between 2001 and 2015, venture capital and private equity of more than USD 103 billion was invested in Indian companies. These investments were made in over 3,100 companies across 12 major sectors, including those critical to the country's development.