Kotak: Sebi’s new alternative investment funds rules redundant

Author: | Published: 18 Aug 2011

Bankers’ counsel in India have branded the Securities and Exchange Board of India’s (Sebi) new rules on alternative investment funds (AIF) unnecessary and insignificant.

Sebi this month released new rules to govern private pools of capital, including private equity (PE), venture capital (VC) and PIPE (private investment in public equity) funds.

The move aims to create a more comprehensive legal framework to promote AIF as a distinct asset class separate from promoter holdings, creditors and public investors.

India’s AIF were previously governed by the 1996...