SEBI allows 100 entities to set up AIFs in India

India Infoline News Service | Mumbai |

Around 11 companies got SEBI's approval to operate in India so far this year

Market regulator SEBI (Securities and Exchange Board of India) has allowed over 100 companies to set up Alternative Investment Funds (AIFs) in around two years, according to a media report.

AIFs are the newly created class of pooled-in investment vehicles for real estate, private equity and hedge funds.

The 100 AIFs have been registered with Sebi in 2012, while 67 in 2013 and 22 in 2011. Around 11 companies got SEBI's approval to operate in India so far this year.
Under Sebi guidelines, AIFs can operate broadly in three categories. The Sebi rules apply to all AIFs, including those operating as private equity funds, real estate 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-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 private equity funds, debt funds or fund of funds, as also all others falling outside the ambit of two other categories.
 

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