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

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  • Last Updated on 12 August, 2025

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SEBI Large Value Funds LVFs Accredited Investors minimum investment ₹25 crore AIF compliance norms SEBI consultation paper

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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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied