The primary request focused on achieving tax parity with Foreign Portfolio Investors (FPIs). This would provide AIFs with greater clarity on tax regulations and minimize litigation, ultimately improving the ease of doing business within the industry.

The IVCA also emphasized the need to encourage significant domestic capital pools, like insurance and pension funds, to participate in the AIF industry. This participation would provide crucial funding for infrastructure, credit, and startups across the nation.

The IVCA's proposals extended beyond just tax relief. They further recommended:

* Expanding exemptions from the "angel tax" in legitimate investment scenarios.

* Establishing a clear definition of "private equity" that encompasses both direct and indirect investors.

* Incentives to attract global fund managers to set up shop in India instead of overseas jurisdictions.

* Reconsideration of the Competition Commission of India's (CCI) definition of control exerted by private equity firms. The IVCA argues that minority stakes, board seats, and veto rights granted to PE firms are primarily defensive measures to protect their investments, not a form of controlling influence.

By implementing these suggestions, the IVCA hopes to create a more supportive ecosystem for AIFs in PM Modi-governed India. This, in turn, would enable AIFs to play a more prominent role in financing critical sectors and fostering economic growth.

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