SEBI cases norms on AIF, VCF investments in overseas firms

India’s alternate investment funds (AIFs) and venture capital funds (VCFs) can now invest in any company they want across the world, thanks to market regulator SEBI relaxing its norm. Earlier, it was mandated that AIFs and VCFs raising funds in India should invest in only those companies globally that have connection to India or at least a back-office in the country.

“The requirement has been done away with. Now they can invest in companies across the world in countries that are signatories to the IOSCO (International Organization of Securities Commissions) multilateral memorandum of understanding between the regulators, barring countries having Financial Action Task Force (FATF) restrictions,” said Deepika V Sawhney, Founder, Transique Corporate Advisors.