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Capital markets regulator Sebi on Thursday came out with guidelines for Alternative Investment Funds (AIFs) for declaring the first close of a scheme. Also, the regulator has specified the manner of calculating the tenure of a close-ended scheme of an AIF and prescribed a fee for change in control of the manager or sponsor. The new guidelines would come into force with immediate effect, the Securities and Exchange Board of India (Sebi) said in a circular. With regard to the first close of schemes of AIFs, Sebi said that the first close of a scheme is required to be declared not later than 12 months from the date of the capital markets regulator's communication for taking the Private Placement Memorandum (PPM) of the scheme on record. In the case of open-ended schemes of Category III AIFs, the first close would refer to the close of their Initial Offer Period. "Corpus of the scheme at the time of declaring its first close shall not be less than the minimum corpus prescribed in AIF
The Fund of Funds for startups, launched in 2016, has committed Rs 7,385 crore to 88 alternative investment funds (AIFs) as of September 24 this year, the commerce and industry ministry said on Monday. These AIFs in turn have invested Rs 11,206 crore in 720 startups, it said. The Fund of Funds (FFS) initiative has been playing a major role in mobilising domestic capital in the Indian startup ecosystem., it added. FFS was announced with a corpus of Rs 10,000 crore. The corpus is to be built up over the 14th and 15th Finance Commission Cycles (2016-2020 and FY 2021-2025) through budgetary support by the Department for Promotion of Industry and Internal Trade (DPIIT), under the ministry. Under FFS, support is extended to SEBI-registered AIFs, which in turn invest in startups. "FFS has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in facilitating raising of domestic capital, reducing dependence on foreign capi