Category III AIF may invest up to 20% of the investable funds in an Investee Company: SEBI

Notification no. SEBI/LAD-NRO/GN/2022/75, Dated: 16.03.2022

The SEBI has notified the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2022. Amended Rule 15(1)(d) provides that Category III AIF shall invest not more than 10% of the investable funds in an Investee Company, directly or through investment in units of other AIF and the large value funds for accredited investors of Category III AIF may invest up to 20% of the investable funds in an Investee Company, directly or through investment in units of other AIFs.

However, it is provided that the Investment in listed equity of an Investee Company, Category III Alternative Investment Funds may calculate the investment limit of 10% of either the investable funds or the net asset value of the scheme and large value funds for accredited investors of Category III Alternative Investment Funds may calculate the investment limit of 20% of either the investable funds or the net asset value of the scheme, subject to the conditions specified by the Board from time to time.

Investible funds mean corpus of the Alternative Investment Fund net of estimated expenditure for administration and management of the fund.

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