Daijiworld Media Network - New Delhi

New Delhi, May 10: The Securities and Exchange Board of India (Sebi) has proposed key regulatory changes aimed at enhancing the operational flexibility of Alternative Investment Funds (AIFs).

In its latest discussion paper released on Friday, Sebi suggested allowing AIFs to extend co-investment opportunities to their investors directly within the AIF structure. This move is expected to streamline investment processes and offer investors more aligned exposure alongside the fund.

Co-investment refers to instances where investors are invited to invest additional capital directly into unlisted securities of a company in which the AIF is either investing or has already invested.

Further, Sebi has proposed lifting the current restriction that prevents AIF investment managers from offering advisory services on listed securities, potentially expanding their scope of services and boosting overall market participation.