Indian Economy News

Union Cabinet clears proposal allowing foreign investment in Alternative Investment Funds

  • IBEF
  • July 30, 2015

New Delhi: The Union Cabinet has cleared the proposal allowing foreign entities to invest in  Alternative Investment Funds (AIFs), that are set up under regulations specified by Securities and Exchange Board of India (SEBI). This decision will help foreign capital to be available to start-ups, early stage ventures, small and medium enterprises (SMEs), thereby increasing investments. AIFs, which include private equity, venture capital and hedge funds, are established as registered trust, structured as incorporated company or limited liability partnership and are regulated by SEBI, which allowed AIFs to be set up as a new investment entity in 2012. Since then, AIFs have cumulatively received investment commitments totalling over Rs 22,600 crore (US$ 3.5 billion), out of which Rs 9,500 crore (US$ 1.5 billion) worth funds have already been raised and Rs 7,530 crore (US$ 1.15 billion) invested.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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