1. Sebi Seeks Approval
For Foreign Funds
Into AIFs
Submitted To:- Submitted By:-
Dr. Navita Nathani Nikhi Jain
Roll No. 27

2.  Market regulator Sebi has asked the government to
allow foreign investments into alternative investment
funds and also downstream investments by them under
the foreign direct investment policy framework.
 FDI policy guidelines specify the norms for venture
capital funds, the AIF regime has superseded it with
substantial changes.
 The regulator had notified in May, 2012 the guidelines
for AIFs

3. Contd....
 AIFs funds are basically funds established in India for
the purpose of pooling in capital from Indian and
foreign investors for further investments.
 Sebi has also allowed promoters of listed companies to
offload up to 10% of equity to registered AIFs to attain
minimum 25% public holding.

4. Contd....
 Experts say policymakers need to make it clear
whether AIFs were also intended as vehicles to attract
foreign investment.
 Some experts, however, say that the provision valid for
venture capital funds in the FDI policy should
continue and there is no need for any clarification.