wordpress blog stats
Connect with us

Hi, what are you looking for?

Finance Ministry permits privately managed funds to invest in AIFs

We missed this earlier: Privately managed provident, superannuation, and gratuity funds can now invest 5% of their corpus in alternative investment funds (AIFs) such as venture capital funds, SME funds, infrastructure funds, and so on. The Finance Ministry permitted this through a gazette notification dated March 15, stating that non-government provident funds and others will be allowed in AIFs (of Category I and Category II) that have a minimum corpus of Rs 100 crore. The amendment will likely provide a new source of capital for startups in the country. Under SEBI's AIF regulations 2012, Category I AIFs are infrastructure funds, SME funds, venture capital funds, and social venture capital funds. Angel funds are a sub-category of VC funds and can presumably be invested in. Debt funds are also a kind of Category I fund. Real estate funds, private equity funds, funds for distressed assets, etc. are registered as Category II AIFs. The government has imposed the following conditions for such investments: Investment in permitted in AIFs with a minimum corpus of Rs 100 crore For Category II AIFs, at least 51% of the AIF funds have to be invested in either infrastructure, SME, venture, capital, or social welfare entities. Exposure to a single AIF cannot exceed 10% of the AIF size. This limit will not apply to a government-sponsored AIF. Funds have to ensure that investments not be made, directly or indirectly, in securities of companies/funds incorporated or operated outside India The sponsor of the AIF should not be the promoter or…

Please subscribe/login to read the full story.
Written By

I cover health, policy issues such as intermediary liability, data governance, internet shutdowns, and more. Hit me up for tips.

Free Reads

News

Telecom companies are against a regulatory sandbox, as they think information revealed by businesses during the sandboxing process might be confidential should be out...

News

According to a statement, the executive body of the European Union had also sought internal documents on the risk assessments and mitigation measures for...

News

The newly launched partially open-sourced LLM Grok-1 can be commercially used but not trademarked.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ