What is a ‘Foreign Institutional Investor’?, full_html

An entity established or incorporated outside India which proposes to make investment in India and which is registered as a FII in accordance with the Securities and Exchange Board of India (SEBI) (Foreign Institutional Investor) Regulations 1995. For more information, click here. , full_html

What are the limits of FII/FPIs Investment in securities in India?, full_html

Foreign Institutional Investor (FII) and Foreign Portfolio Investors (FPI) may in terms of Schedule 2 and 2A of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations, as the case may be, respectively, invest in the capital of an Indian company under the Portfolio Investment Scheme which limits the individual holding of an FII/FPI below 10% of the capital of the company and the aggregate limit for FII/FPI investment to 24% of the capital of the company. This aggregate limit of 24% can be increased to the sectoral cap/statutory ceiling, as applicable, by the Indian company concerned through a resolution by its Board of Directors followed by a special resolution to that effect by its General Body and subject to prior intimation to RBI. The aggregate FII/FPI investment, individually or in conjunction with other kinds of foreign investment, will not exceed sectoral/statutory cap. , full_html

Who is a Foreign Venture Capital Investor (FVCI)?, full_html

FVCI refers to an investor incorporated and established outside India, which is registered under the Securities and Exchange Board of India (Foreign Venture Capital Investor) Regulations, 2000 {SEBI (FVCI) Regulations} and proposes to make investments in accordance with FDI Regulations. For more information, click here. , full_html

What are investment vehicles?, full_html

Investment Vehicle is an entity registered and regulated under relevant regulations framed by SEBI or any other authority designated for the purpose. For the purpose of Schedule 8 of FEMA 20(R), an Investment Vehicle is a Real Estate Investment Trust (REIT) governed by the SEBI (REITs) Regulations, 2014, an Infrastructure Investment Trust (InvIt) governed by the SEBI (InvIts) Regulations, 2014 and an Alternative Investment Fund (AIF) governed by the SEBI (AIFs) Regulations, 2012. It does not include a Venture Capital Fund registered under the erstwhile SEBI (Venture Capital Funds) Regulations, 1996. For more information, click here. , full_html

What is an Angel Investor?, full_html

"Angel investor" means any person who proposes to invest in an angel fund and satisfies one of the following conditions, namely, Net tangible assets of at least INR 2 cr excluding value of his principal residence, and who: has early stage investment experience, or has experience as a serial entrepreneur, or is a senior management professional with at least ten years of experience A body corporate with a net worth of at least INR 10 cr, or An AIF/ VCF registered under these regulations. For more information, click here. , full_html

What is the meaning of Angel Fund?, full_html

"Angel fund” is a subcategory of Venture Capital Fund under Category I Alternative Investment Fund that raises funds from angel investors and invests in accordance with the provisions of AIF Regulations. , full_html

What is Fund of Funds?, full_html

Fund of Funds, in general parlance as gathered from publicly available sources is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. In the context of AIFs, a Fund of Fund is an AIF which invest in another AIF. Please refer to link for more information. , full_html

What is 'debt fund'?, full_html

Debt fund is an Alternative Investment Fund (AIF) which invests primarily in debt or debt securities of listed or unlisted investee companies according to the stated objectives of the Fund. These funds are registered under Category II. In this regard, it is clarified that, since Alternative Investment Fund is a privately pooled investment vehicle, the amount contributed by the investors shall not be utilised for purpose of giving loans. Please refer to section 2(1)(i) of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information. , full_html

In which legal forms can an AIF be set up?, full_html

An AIF under the SEBI (Alternative Investment Funds) Regulations, 2012 can be established or incorporated in the form of a trust or a company or a limited liability partnership or a body corporate. Most of the AIFs registered with SEBI are in trust form. Please refer to section 2(1)(b) of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information. , full_html

What is the limit specified under AIF regulations for number of investors?, full_html

No scheme of an AIF (other than angel fund) shall have more than 1000 investors. (Please note that the provisions of the Companies Act, 1956 shall apply to the AIF if it is formed as a company). In case of an angel fund, no scheme shall have more than two hundred angel investors. However, an AIF cannot make invitation to the public at large to subscribe its units and can raise funds from the sophisticated investors only through private placement. Please refer to section 4(b), 10(f) and 19E(4) of SEBI (Alternative Investment Funds) Regulations, 2012 at the link for more information , full_html

Can Venture Capital Funds registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996 seek re-registration under SEBI (AIF) Regulations?, full_html

Venture Capital Funds (VCFs) registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996 ("VCF Regulations") may seek reregistration under SEBI (Alternative Investment Funds) Regulations, 2012 subject to approval of two-third of their investors by value of their investment. As against other applications for registration as Category I- VCFs who have to pay INR 5 lakhs as registration fees, VCFs registered under the VCF Regulations are required to pay INR 1 lakh only as re-registration fees. Please refer to section 3(2) and second schedule of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information. , full_html

What are Category I AIFs?, full_html

AIFs which invest in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government or regulators consider as socially or economically desirable and shall include venture capital funds, SME Funds, social venture funds, infrastructure funds and such other Alternative Investment Funds as may be specified. Please refer to section 3(4)(a) of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information. , full_html

What are Category II AIFs?, full_html

AIFs which do not fall in Category I and III and which do not undertake leverage or borrowing other than to meet day-to-day operational requirements and as permitted in the SEBI (Alternative Investment Funds) Regulations, 2012. Various types of funds such as real estate funds, private equity funds (PE funds), funds for distressed assets, etc. are registered as Category II AIFs. Please refer to section 3(4)(b) of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information. , full_html

What are Category III AIFs?, full_html

AIFs which employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. Various types of funds such as hedge funds, PIPE Funds, etc. are registered as Category III AIFs. Please refer to section 3(4)(c) of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information. , full_html

Foreign Institutional Investment in India - Financial Investors Initiative

Snapshot

PE-VC investments in India reached ~$70 bn in 2021 with a record velocity of over 2,000 deals closed compared to almost 1,100 each in the two years prior, in a resounding bounce back from Covid-driven restraint.

Already in 2022, more than $24 bn of PE-VC investments in ~630 deals were recorded by May. The average realised cheque size of $168 mn this year keeps PE deals within the range of $150–$200 mn seen over last five years.

$ 307 Bn
Private-equity investment from 2012-2021
2067
Deals in 2021
75 k+
DPIIT Recognised Startups in India
8.7%
Real GDP growth (2021-22)

Recent Investments

Mar 15, 2023
CCI approves acquisition of sole control of Meritor by Cummins.
Mar 15, 2023
CCI approves acquisition of 100% of equity share capital of L&T Infrastructure Development Projects Limited and Kudgi Transmission Limited, by Epic Concesiones Private Limited and Infrastructure Yield Plus II, respectively.
Mar 15, 2023
CCI approves acquisition of METRO Cash and Carry India Private Limited by Reliance Retail Ventures Limited.
Feb 23, 2023
CCI approves acquisition of 100% of issued and outstanding share capital and sole control of VGP Holdings LLC by Gateway Velocity Holding Corp.
Feb 17, 2023
CCI approves proposed acquisition by Dalmia Cement (Bharat) Limited of target assets from Jaiprakash Associates Limited and its associate.
Feb 15, 2023
CCI approves acquisition of certain equity share capital of LT Foods Limited by SALIC International Investment Corporation.
Feb 14, 2023
CCI approves consolidation of HPM Business of LANXESS AG and DEM Business of Koninkiljke DSM N.V. under Zehnte LXS GmbH, a JV HoldCo of Platin 2170 GmbH & LANXESS.
Feb 14, 2023
CCI approves combination involving acquisition of up to 100% shareholding in R Systems International Limited by BCP Asia II Topco II Pte. Ltd.
Feb 14, 2023
CCI approves acquisitions of commercial real estate assets by Nexus Select Trust.
Feb 13, 2023
CCI approves proposed acquisition of upto 25% shareholding in HPPL by National Investment and Infrastructure Fund and proposed merger of HIPL into HPPL.
Feb 13, 2023
CCI approves acquisition of 20% equity share capital of Keimed Private Limited by Ms. Shobana Kamineni through Prime Time Logistics Technologies Private Limited.
Feb 10, 2023
CCI approves acquisition of 100% equity and preference shares of Lanco Anpara Power Limited by Megha Engineering and Infrastructures Limited.
Feb 10, 2023
CCI approves acquisition of Huntsman International’s textile effects business by Archroma Operations S.à.r.l.
Nov 22, 2022
FPIs invested a net sum of INR 30,385 crore in equities during November 1-18, 2022.
Nov 07, 2022
Reliance Industries is set to acquire German retailer METRO AG's Cash & Carry business in India in a deal estimated at around 500 mn euros.
Nov 07, 2022
JM Financial PE leads Rs 95 cr investment in Silveredge Tech.
Jul 25, 2022
L&T to sell 8 roads, transmission project to Edelweiss fund for Rs 7000 crore. Read More
Jul 22, 2022
India Inc signs over 1,100 deals worth over $ 104 billion in first half of 2022. Read More
Nov 03, 2021
Paytm raises $1.1 billion from anchor investors in India’s blockbuster IPO. Read More
Aug 31, 2021
PayU acquires Billdesk for $4.7 bn in one of the largest Indian fintech deals. Read More
Jul 15, 2021
Aqgromalin raises INR 5.5 crore in funding led by Zephyr Peacock India Growth Fund. Read More
Jul 02, 2021
Direct-to-consumer fresh meat and seafood brand Licious has raised $192 million in a Series F funding round led by Singapore-based investment firm Temasek and PE firm Multiples. Read More.
May 10, 2021
Private equity major Blackstone Group acquired Embassy Industrial Parks at INR 5,250 crore from Warburg Pincus and Embassy Group in the largest yet logistics and warehousing deal in the country. Blackstone will become the country's largest warehousing space landlord with over 40 million sq ft logistic parks in assets. Read more
May 05, 2021
A group of 5 IIT Kanpur alumni have started a fund-raising drive on a social media platform to buy oxygen concentrators which they will donate to Delhi and Uttar Pradesh governments for distribution in hospitals. ‘Breathe India’ initiative, has raised more than INR 3 cr in a week. Read More
Jan 13, 2021
CoinSwitch Kuber raises $15 mn in funding from Ribbit Capital, Paradigm, others. The company is going to utilise the funds to enhance product, security, compliance and tech capabilities, and build a brand with a view to be the leading cryptocurrency investment platform for Indian users. Read More
Jan 11, 2021
Zupee raises $10 million funding from WestCap, Matrix Partners India. Read More
Jan 08, 2021
TVS Capital closes Fund III, raises INR 1,550 cr. Read More
Jan 05, 2021
Cred raises $81 million from DST Partners, others at $800 million valuation, buys back ESOPs. Read More
Nov 23, 2020
Byju's raises $200 mn in fresh funding; valuation surges to $12 bn. Read More
Nov 18, 2020
Peer-to-peer livestock trading platform Animall has raised $5.9 Mn in Series A funding round led by Sequoia Capital. Read More
Nov 13, 2020
Zomato has raised $195 mn in funding from six investors including Luxor, Kora and Steadview, valuing the online food ordering platform at $3.6 billion. Read More
Nov 12, 2020
Alternative credit platform BlackSoil has raised INR 110 crore through its first close for its maiden secured AIR strategy BlackSoil India Credit Fund (BICF). Read More
Nov 03, 2020
Insurtech startup Fedo has raised $1 mn in its pre-Series A funding round led by Unicorn India Ventures and a clutch of investors including former Max Bupa managing director & CEO Ashish Mehrotra. Read More
Oct 19, 2020
Canadian asset manager Brookfield is acquiring 12.5 million square feet of rent-yielding offices and co-working spaces from RMZ Corp. for $2 bn.
Oct 07, 2020
SAIF Partners has planned to raise $400 million for its new India-dedicated fund, according to a filing with US securities market regulator SEC.
Jul 01, 2020
Ten prominent investors including ADIA, TPG, PIF, KKR and Mubadala, invested US$15bn into Reliance Jio. Read more
Jun 06, 2020
Emami Group sells solar business to Canada’s Brookfield. Read more
Apr 29, 2020
KKR expands India portfolio acquiring five solar assets. Read more
Mar 23, 2020
CureFit raises funding from Temasek led round. Read more
Feb 11, 2020
Qatar Investment Authority acquires Adani Electric. Read more
Feb 06, 2020
CDPQ and Piramal Asset Management Pvt. Ltd have floated a US$300mm private credit financing platform. Read more
Dec 25, 2019
GIC invests in IRB Infrastructure Trust, receives first tranche. Read more
Dec 16, 2019
Reliance Jio tower assets sold to Canada's Brookfield. Read more
Dec 05, 2019
GIC, CPPIB, Australian Super investment in NIIF. Read more
Nov 25, 2019
Paytm raises funding from T Rowe Price led round. Read more
Nov 21, 2019
Cube Highways wins third TOT bundle from NHAI. Read more
Oct 17, 2019
PremjiInvest, Warburg Pincus- SBI General Insurance. Read more

Industry Scenario

Much of 2021’s deal activity was in consumer tech and IT/ITES, an indication of the expanding share of growth captured by the tech and internet sectors.

The two sectors combined represented more than 60% of the year’s deal value at nearly $44 bn. Major LPs are getting more active and co-investing with GPs on large assets. 2021 saw 2x activity from LPs compared to their average deal activity across 2018–2020.

In the most celebrated milestone for 2021, exits worth more than $36 bn unlocked. Strategic sales constituted 50% of the exit volumes, while the share of value was almost equally split across secondary sales, public market exits, and strategic sales

Growth Drivers

Infrastructure investment of $1.4 Trillion between 2019 and 2025
21% of this investment through the private sector; 100% tax exemption for investment by sovereign wealth funds and pension funds
New investment models for greater private participation
REITs and InvITs launched in India; Strategic disinvestment target of $27.6 Bn in FY21
3rd largest startup ecosystem globally
Domestic ecosystem valued at over $90 Bn; 31 Indian unicorns and growing
Ease of regulatory environment
Institutional investment limit brought at par with to FDI investment threshold

Industry trend

NOTES-

Infrastructure sector accounted for one third of all the private capital invested in India followed by financial services.
The area in the tree-map is proportional to the deal amounts
On hovering on the area, the tree-map will showcase the no. of deals and major highlights/transactions.
All numbers are in US$bn
Others include sectors like Education, Food, Entertainment, Telecom, Logistics and Retail & Consumer

Open
*Validated OnMar 15, 2023

Clarification on the valuation of bonds issued under Basel…

Revisions to the residual maturity of bonds for the purpose…
Open
*Validated OnMar 15, 2023

Circular on Mutual Funds

Circulars issued by SEBI for the various amendments for Mutu…
Open
*Validated OnMar 15, 2023

Master Circular for Depositories

A compilation of the relevant circulars/communications perta…
Open
*Validated OnMar 15, 2023

Insolvency and Bankruptcy Board of India (Model Bye- Laws…

Amendment to the Insolvency and Bankruptcy Board of India (M…
Open
*Validated OnMar 15, 2023

Circular on Amendment to Regulation 20(6) of SEBI (AIF)…

Waiver in respect of compliance with clause (i) and (ii) of…
Open
*Validated OnMar 15, 2023

Master Circular on (i) Scheme of Arrangement by Listed…

This Master Circular is a compilation of relevant and update…
Open
*Validated OnMar 15, 2023

Introduction of Unified Payments Interface (UPI) mechanism…

The process flow for applying through the online interface o…
Open
*Validated OnMar 15, 2023

Introduction of “Flexi Cap Fund” as a new category under…

In order to give more flexibility to the mutual funds and ta…
Open
*Validated OnMar 15, 2023

Circular on Enhancement of Overseas Investment limits for…

Mutual Funds can make overseas investments subject to a maxi…
Open
*Validated OnMar 15, 2023

Guidelines for rights issue of units by an unlisted…

In order to enable unlisted InvITs to raise further f…
Open
*Validated OnMar 15, 2023

Framework for monitoring of foreign holding in Depository…

Operational Guidelines for Indian Depositories which were re…
Open
*Validated OnMar 15, 2023

Procedural Guidelines for Proxy Advisors

Procedural Guidelines for Proxy Advisors alongside the Code…
Open
*Validated OnMar 15, 2023

Manner and mechanism of providing exit option to dissenting…

This details the guidelines in respect of conditions, manne…
Open
*Validated OnMar 15, 2023

Manner and mechanism of providing exit option to dissenting…

This details the guidelines in respect of conditions, manner…
Open
*Validated OnMar 15, 2023

Guidelines for Issue and Listing of Structured Products/…

Amendments to notify valuation of MLDs shall be carried out…
Open
*Validated OnMar 15, 2023

Master Circular on Mutual Funds

In order to enable the industry and other users to have acce…
Open
*Validated OnMar 15, 2023

The Insolvency and Bankruptcy Code (Amendment) Act, 2020

Parliament passes amendments to the India Insolvency and Ban…
Open
*Validated OnMar 15, 2023

Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020

Amendments to IBC Code due to ongoing COVID-9 Pandemic
Open
*Validated OnMar 15, 2023

Operational framework for transactions in defaulted debt…

The operational framework for transactions in defaulted debt…
Open
*Validated OnMar 15, 2023

Securities and Exchange Board of India (Substantial…

Amendment to the Securities and Exchange Board of India (Sub…
Open
*Validated OnMar 15, 2023

Securities and Exchange Board of India (Issue of Capital…

Amendments to the Securities and Exchange Board of India (Is…
Open
*Validated OnMar 15, 2023

Conducting meeting of unit-holders of InvITs and REITs…

InvITs/ REITs may conduct meeting of unitholders through VC…
Open
*Validated OnMar 15, 2023

The Insolvency and Bankruptcy Code, 2016 (Amended)

An Act to consolidate and amend the laws relating to reorgan…
Open
*Validated OnMar 15, 2023

SEBI Real Estate Investment Trusts (REITs) Regulations, 2014

Framework, rules and regulation of the REITs
Open
*Validated OnMar 15, 2023

SEBI Infrastructure Investment Trusts (InvITs) Regulation,…

Framework, rules and regulations of InvITs
Open
*Validated OnMar 15, 2023

SEBI Alternative Investment Funds Regulations, 2012

Guidelines for the setting up and operation of Alternative I…
Open
*Validated OnMar 15, 2023

RBI master circular on foreign investment in India

Rules and regulations implemented under FEMA to promote inve…
Open
*Validated OnMar 15, 2023

Monetization of Operational National Highways

National Highways Authority of India (NHAI) is monetizing pu…
Open
*Validated OnMar 15, 2023

Insolvency and Bankruptcy (Application to Adjudicating…

Amendment to the Insolvency and Bankruptcy (Application to A…

Industry Highlights

12

Highways bundles
100%

Tax exemption
14.4%

Average IRR (India)

12 lots of highway bundles of over 6,000 km to be monetized by 2024
Sovereign Wealth Funds to get 100% tax exemption on their interest, dividend, and capital gain incomes for investments made before 2024 in infrastructure and other notified sectors
Part of LIC to be privatized through an IPO
Established funds in Asia and India averaged an IRR of 11.9% and 14.4% respectively. This provides a good benchmark for investors
Disinvestment of BPCL and Concor – setting the ground for strategic sale programme
Modes of Investment- FDI, FVCI, FPI, REITs, INvits, AIFs

Major Investors

Financial Investors Initiative Team

Financial Investors Initiative is a team set up with the objective of facilitating the greater allocation of capital to India by Limited Partners and increased deployment by General Partners. The team works with investors to identify investment opportunities, undertake policy advocacy, and facilitate the resolution of issues at different stages of investment.

Key initiatives taken by FII team for promoting Institutional investment

Identification of investment avenues aligning with investors’ interests
Desktop research for building India investment strategy
Strategic investment advisory and financial modelling
Support for obtaining requisite permissions and clearances
Aftercare through issue resolution with support from regulatory bodies

Team Articles

Jan 12, 2022

A Year that was- Driving institutional investment in India

The last decade has been extremely eventful for the private…

By:

Himani Goel

Vatsal Khullar

Oct 07, 2021

Harnessing India’s Digital Economy: Private Sector Championing the…

While the steeply upwards curve of global trade and…

By:

Strategic Investment Research Unit (SIRU)

Sep 27, 2021

Standing the test of time – India’s Performance in the Global…

India has once again proven its mettle in the…

By:

Invest India

FAQs

Frequently
Asked Questions

What is a ‘Foreign Institutional Investor’ ?

An entity established or incorporated outside India which proposes to make investment in India and which is registered as a FII in accordance with the Securities and Exchange Board of India (SEBI) (Foreign Institutional Investor) Regulations 1995.

For more information, click here.

Was this helpful?

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What are the limits of FII/FPIs Investment in securities in India?

Foreign Institutional Investor (FII) and Foreign Portfolio Investors (FPI) may in terms of Schedule 2 and 2A of FEMA (Transfer or Issue of Security by Persons Resident Outside India) Regulations, as the case may be, respectively, invest in the capital of an Indian company under the Portfolio Investment Scheme which limits the individual holding of an FII/FPI below 10% of the capital of the company and the aggregate limit for FII/FPI investment to 24% of the capital of the company. This aggregate limit of 24% can be increased to the sectoral cap/statutory ceiling, as applicable, by the Indian company concerned through a resolution by its Board of Directors followed by a special resolution to that effect by its General Body and subject to prior intimation to RBI. The aggregate FII/FPI investment, individually or in conjunction with other kinds of foreign investment, will not exceed sectoral/statutory cap.

Was this helpful?

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No
Who is a Foreign Venture Capital Investor (FVCI)?

FVCI refers to an investor incorporated and established outside India, which is registered under the Securities and Exchange Board of India (Foreign Venture Capital Investor) Regulations, 2000 {SEBI (FVCI) Regulations} and proposes to make investments in accordance with FDI Regulations.

For more information, click here.

Was this helpful?

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No
What are investment vehicles?

Investment Vehicle is an entity registered and regulated under relevant regulations framed by SEBI or any other authority designated for the purpose. For the purpose of Schedule 8 of FEMA 20(R), an Investment Vehicle is a Real Estate Investment Trust (REIT) governed by the SEBI (REITs) Regulations, 2014, an Infrastructure Investment Trust (InvIt) governed by the SEBI (InvIts) Regulations, 2014 and an Alternative Investment Fund (AIF) governed by the SEBI (AIFs) Regulations, 2012. It does not include a Venture Capital Fund registered under the erstwhile SEBI (Venture Capital Funds) Regulations, 1996.

For more information, click here.

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What is an Angel Investor?
"Angel investor" means any person who proposes to invest in an angel fund and satisfies one of the following conditions, namely,
- Net tangible assets of at least INR 2 cr excluding value of his principal residence, and who:
  has early stage investment experience, or
  
  has experience as a serial entrepreneur, or
  
  is a senior management professional with at least ten years of experience
- A body corporate with a net worth of at least INR 10 cr, or
- An AIF/ VCF registered under these regulations.
For more information, click here.

Was this helpful?

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No
What is the meaning of Angel Fund?

"Angel Fund” is a sub-category of Venture Capital Fund under Category I Alternative Investment Fund that raises funds from angel investors and invests in accordance with the provisions of AIF Regulations.

For more information, click here.

Was this helpful?

Yes

No
In which legal forms can an AIF be set up?

An AIF under the SEBI (Alternative Investment Funds) Regulations, 2012 can be established or incorporated in the form of a trust or a company or a limited liability partnership or a body corporate. Most of the AIFs registered with SEBI are in trust form.

Please refer to section 2(1)(b) of SEBI (Alternative Investment Funds) Regulations, 2012 at link for more information.

Was this helpful?

Yes

No
What is the limit specified under AIF regulations for number of investors?

No scheme of an AIF (other than angel fund) shall have more than 1000 investors. (Please note that the provisions of the Companies Act, 1956 shall apply to the AIF if it is formed as a company). In case of an angel fund, no scheme shall have more than two hundred angel investors. However, an AIF cannot make invitation to the public at large to subscribe its units and can raise funds from the sophisticated investors only through private placement.

Please refer to section 4(b), 10(f) and 19E(4) of SEBI (Alternative Investment Funds) Regulations, 2012 at the link for more information

Was this helpful?

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No
What are Category I AIFs?

Category I of the Alternative Investment Funds (AIF) include funds which invest in start-up, early stage ventures, social ventures, small & medium enterprises (SME), infrastructure or other sectors or areas which the Government or regulators consider as socially or economically desirable.

It shall include venture capital funds, SME funds, social venture funds, infrastructure funds and such other AIF.

For more information, click here

Was this helpful?

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What are Category II AIFs?

Alternative Investment Funds (AIF) which do not fall in Category I and III and which do not undertake borrowing other than to meet day-to-day operational requirements and as permitted in the SEBI (Alternative Investment Funds) Regulations, 2012 are Category II AIF.

Various types of funds such as real estate funds, private equity funds, funds for distressed assets, etc. are registered as Category II AIF.

For more information, click here

Was this helpful?

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No
What are Category III AIFs?

Alternate Investment Funds (AIFs), which employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. Various types of funds such as hedge funds, PIPE Funds, etc. are registered as Category III AIFs.

For more information, click here

Was this helpful?

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Stakeholders

Timeline Loading ...

Financial Investors Initiative

Snapshot

PE-VC investments in India reached ~$70 bn in 2021 with a record velocity of over 2,000 deals closed compared to almost 1,100 each in the two years prior, in a resounding bounce back from Covid-driven restraint.

$ 307 Bn

2067

75 k+

8.7%

Recent Investments

Industry Scenario

Growth Drivers

Infrastructure investment of $1.4 Trillion between 2019 and 2025

New investment models for greater private participation

3rd largest startup ecosystem globally

Ease of regulatory environment

Investment Trends in India

Industry trend

Clarification on the valuation of bonds issued under Basel…

Circular on Mutual Funds

Master Circular for Depositories

Insolvency and Bankruptcy Board of India (Model Bye- Laws…

Circular on Amendment to Regulation 20(6) of SEBI (AIF)…

Master Circular on (i) Scheme of Arrangement by Listed…

Introduction of Unified Payments Interface (UPI) mechanism…

Introduction of “Flexi Cap Fund” as a new category under…

Circular on Enhancement of Overseas Investment limits for…

Guidelines for rights issue of units by an unlisted…

Framework for monitoring of foreign holding in Depository…

Procedural Guidelines for Proxy Advisors

Manner and mechanism of providing exit option to dissenting…

Manner and mechanism of providing exit option to dissenting…

Guidelines for Issue and Listing of Structured Products/…

Master Circular on Mutual Funds

The Insolvency and Bankruptcy Code (Amendment) Act, 2020

Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020

Operational framework for transactions in defaulted debt…

Securities and Exchange Board of India (Substantial…

Securities and Exchange Board of India (Issue of Capital…

Conducting meeting of unit-holders of InvITs and REITs…

The Insolvency and Bankruptcy Code, 2016 (Amended)

SEBI Real Estate Investment Trusts (REITs) Regulations, 2014

SEBI Infrastructure Investment Trusts (InvITs) Regulation,…

SEBI Alternative Investment Funds Regulations, 2012

RBI master circular on foreign investment in India

Monetization of Operational National Highways

Insolvency and Bankruptcy (Application to Adjudicating…

Industry Highlights

12

100%

14.4%

Major Investors

Financial Investors Initiative Team

Prerna Soni

Principal Investment Specialist

Rahul Agarwal

Principal Investment Specialist

Himani Goel

Senior Investment Specialist

Vatsal Khullar

Investment Specialist

Ayush Saxena

Investment Specialist

Govind Puri

Investment Specialist

Saransh Roy

Investment Specialist

Team Articles

FII Team Newsletters

FAQs

Frequently Asked Questions

What is a ‘Foreign Institutional Investor’ ?

What are the limits of FII/FPIs Investment in securities in India?

Who is a Foreign Venture Capital Investor (FVCI)?

What are investment vehicles?

What is an Angel Investor?

What is the meaning of Angel Fund?

In which legal forms can an AIF be set up?

What is the limit specified under AIF regulations for number of investors?

What are Category I AIFs?

What are Category II AIFs?

What are Category III AIFs?

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