Market regulator Sebi has allowed 73 entities to set up Alternative Investment Funds (AIFs) — a newly created class of pooled-in investment vehicles for real estate, private equity and hedge funds — in the past one year. The 73 AIFs have been registered with the Securities and Exchange Board of India (Sebi) since July 2012. Sebi had allowed 49 AIFs to set up shop in the country till April, and the number has increased to 73. As per Sebi data, most of these applications got approval in November last year and March, February this year.
Ponzi operators face massive spike in fines
Operators of illegal money-pooling schemes will soon face penalties of up to three times the profit made by them, as against the current provision of a meagre fine of R1 crore. The capital markets regulator Sebi (Securities and Exchange Board of India) has decided to increase the monetary penalty for those running unauthorised Collective Investment Schemes (CIS), as the existing mechanism have not proved to be sufficient to deter such illegal mobilisation of money.