Sebi Proposes Flexibility in Co-Investment for AIFs

The Securities and Exchange Board of India (Sebi) has unveiled plans to introduce greater flexibility for alternative investment funds (AIFs) in offering co-investment opportunities. On Friday, Sebi recommended allowing AIFs to facilitate co-investments in unlisted securities using a dedicated Co-Investment Vehicle (CIV) scheme. These co-investment opportunities would be accessible to investors meeting specific qualifications.

Sebi also proposed that investment managers of AIFs be permitted to offer advisory services on listed securities, removing existing prohibitions. The regulatory body suggested that CIVs, classified under either Category I or II of AIFs, should file a shelf private placement memorandum (PPM) upon registration if they intend to provide co-investment facilities.

This initiative is part of Sebi's broader effort to enhance the AIF sector's operational flexibility and improve investor engagement. Sebi has requested public feedback on these proposals until May 30, aiming to refine the regulatory framework governing co-investments through CIV schemes.

(With inputs from agencies.)