SEBI proposes relaxed norms for Large Value Funds, cuts minimum investment to ₹25 crore

Consultation Paper Dated 08.08.2025

 SEBI Issues Consultation Paper on LVFs

The Securities and Exchange Board of India (SEBI) has released a Consultation Paper inviting public comments on proposals aimed at easing regulatory norms for Large Value Funds for Accredited Investors (LVFs). These measures are intended to provide greater operational flexibility and enhance participation by high-value investors in the Alternative Investment Fund (AIF) space.

 Lower Minimum Investment Requirement

One of the key proposals in the paper is to reduce the minimum investment threshold for LVFs from the existing higher limit to ₹25 crore. This change is expected to make LVFs more accessible to a broader segment of Accredited Investors who can commit significant capital, while still maintaining their high-value investor profile.

Exemptions from Certain Compliance Norms

SEBI has proposed that LVFs be exempted from several existing compliance requirements applicable to other AIF categories. These exemptions include the use of the standard Private Placement Memorandum (PPM) template, the need for an annual audit of the PPM, the responsibilities currently placed on the investment committee, and the requirement of NISM certification for key members of the investment team of the fund manager.

 Objective and Stakeholder Engagement

The overall objective of the proposed changes is to simplify compliance obligations for LVFs, thereby promoting ease of doing business in the AIF sector and encouraging larger capital commitments. SEBI has invited stakeholders to provide their feedback on the proposals, which will be taken into consideration before finalising the regulatory amendments.

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