Sebi allows 7 AIFs to operate in India

Written by Press Trust of India | New Delhi | Updated: Aug 18 2012, 06:42am hrs
Market regulator Sebi has allowed seven Alternative Investment Funds (AIF) to set up shop in the country under a newly formulated route, which allows pooling of funds for investments in areas such as real estate, private equity and hedge funds. The approval has been given to all the seven AIFs by the Securities and Exchange Board of India in a period of less than one month, as per the information available with the market regulator.

Sebi had notified its guidelines in May for AIFs, which are funds established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy. At a board meeting held on Thursday, Sebi had decided that the promoters of listed companies can offload 10% of equity to AIFs, such as SME Funds, Infrastructure Funds, PE funds and Venture Capital Funds, registered with the market regulator to attain minimum 25% public holding.

Under Sebi guidelines, AIFs can operate broadly in three categories and it is mandatory for them to get registered with it. The seven AIFs that have registered with Sebi are IFCI Syncamore India Infrastructure Fund, Utthishta Yekum Fund, Indiaquotient Investment Trust, Forefront Alternate Investment Trust, Excedo Realty Fund, Sabre Partners Trust and KKR India Alternate Credit Opportunities Fund.