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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

IPOs, funding
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Ashley Coutinho Mumbai
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

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First Published: Feb 13 2020 | 7:18 PM IST

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