With a view to simplify and rationalize compliance requirements of alternative investment funds (AIFs), provide investment flexibility and streamline regulatory processes, the Sebi Board approved certain amendments to SEBI (Alternative Investment Funds) Regulations, 2012.

These changes include:

i) Category I AIF – Venture Capital Funds (VCFs) to invest at least 75 Percentage of investable funds in unlisted equity shares and equity linked instruments of venture capital undertakings or in companies listed or proposed to be listed on a SME exchange or SME segment of an exchange.

The existing investment restrictions on the residual portion of investable funds of VCFs have been done away with.

(ii) The minimum amount of grant of INR 25 Lakhs stipulated for Category I AIFs – Social Venture Funds shall not apply to grants received from Accredited Investors;

(iii) AIFs can also issue partly paid up units to investors to represent the portion of committed capital invested;

(iv) AIFs to file private placement memorandum with SEBI through registered Merchant Bankers