Sebi doubles AIFs overseas investment limit to $1.5 bn after talks with RBI

Industry players say the move will help the Rs 4.4-trillion AIF industry as the current allowance in many cases was getting fully utilised

The Securities and Exchange Board of India (Sebi) on Friday doubled the overseas investment limit of alternative investment funds (AIFs) to $1.5 billion. The market regulator said the decision was taken following consultation with the Reserve Bank of India (RBI).

In 2015, Sebi had created a $500-million allowance for overseas investment. However, domestic AIFs were only allowed to invest a fourth of their corpus overseas. Also, overseas investments were required to have an Indian connection. In 2018, the limit was increased from $500 million to $750 million.

Sebi’s circular said the overseas investment conditions remain unchanged.

Industry players said Sebi’s