Sebi's diktat for AIF benchmarking may lead to sub-categorisation

Sebi has classified AIFs into three categories, with four sub-categories for 'Category I AIFs' that include venture capital funds, SME funds, social venture funds, and infrastructure funds

The Securities and Exchange Board of India’s (Sebi’s) diktat for benchmarking the performance of alternative investment funds (AIFs) may necessitate the creation of sub-categories.

Sebi has classified AIFs into three categories, with four sub-categories for ‘Category I AIFs’ that include venture capital funds (including angel funds), SME funds, social venture funds, and infrastructure funds. There are no sub-categories for category-II and category-III AIFs.

“For data to be dissected meaningfully, sub-categorisation is required,” said a senior industry executive.

All category-III schemes, for instance, are not comparable and cannot be put under one basket as they include debt, equity, and hybrid schemes