Latest news with #AlternativeInvestmentFunds
Time of India
4 days ago
- Business
- Time of India
Explained: How is Specialised Investment Fund different from mutual funds, PMS, and AIF
Tired of too many ads? Remove Ads What is a Specialised Investment Fund (SIF)? Mutual Funds (MFs) Tired of too many ads? Remove Ads Portfolio Management Services (PMS) Alternative Investment Funds (AIFs) Structure and Regulation Tired of too many ads? Remove Ads Investment Flexibility and Strategy Liquidity and Tenure Who can set up a SIF? With a wide range of investment options today, it's crucial to understand the key differences between vehicles like Specialised Investment Funds (SIFs), Alternative Investment Funds (AIFs), Portfolio Management Services PMS ), and mutual funds—each tailored to distinct investor needs, risk appetites, and return market regulator Sebi has introduced a Specialised Investment Fund (SIF) framework to bridge the gap between mutual funds (MFs) and portfolio management services (PMS), and it aims to provide sophisticated investors with more flexible investment opportunities while ensuring regulatory funds pool money from multiple investors to invest in stocks, bonds, or other securities. They are highly regulated, offer diversification, and are accessible to a wide range of investors, making them one of the most popular investment vehicles. MFs are suitable for those looking for lower risk and ease of offers customised portfolio management to wealthy investors, with a minimum ticket size of Rs 50 lakh. It provides personalised attention, allowing investors to tailor their portfolio based on risk appetite and goals. While providing more control than mutual funds, PMS often carries higher fees and are investment funds pooled privately and involve investments in real estate, hedge funds, private equity, etc. They are open to sophisticated investors with a minimum entry limit of Rs 1 crore. AIFs come in three categories—high-risk, moderate-risk, and lower-risk funds—and are less regulated compared to mutual mutual funds that pool investor money into diversified portfolios, or PMS that provides tailored portfolio management, SIF is a newly introduced investment avenue by the regulator, offering a unique structure and strategy for sophisticated funds in India are regulated by SEBI and follow strict norms regarding transparency, liquidity, diversification, and suitability for retail investors. PMS offers customised portfolio management to wealthy investors where portfolios are managed on behalf of individual clients with a minimum investment threshold currently Rs 50 are pooled investment vehicles for sophisticated investors and are categorised into three types—high-risk, moderate-risk, and lower-risk funds. They are meant for high-net-worth individuals (HNIs) and institutional investors looking to participate in less-regulated, high-risk minimum amount to be invested in an SIF will be Rs 10 lakh per investor. The fund house can offer a SIP and SWP but it must comply with the minimum threshold funds follow standardised asset allocation models and are limited to listed instruments in most cases. PMS offers more customisation, with fund managers directly managing portfolios tailored to the client's profile. AIFs allow flexibility in investing in unlisted securities, structured debt, and real estate, depending on the regulator allows SIFs to offer 3 categories of investment strategies: they are equity-oriented strategies, debt-oriented strategies, and the third is a hybrid category. The current framework allows only one strategy per category per funds provide high liquidity with daily NAVs and redemption options. PMS products are also relatively liquid, though with more constraints compared to mutual funds. AIFs, depending on the strategy, may have multi-year lock-ins and limited exit SIF can be open-ended, closed-ended, or interval-based. The redemption process may include a notice period of up to 15 working days, allowing fund managers to manage liquidity are two routes to establish an SIF. As per the first rule, a fund house must be in operation for a minimum of 3 years with an AAUM of Rs 10,000 crore in the preceding 3 years. The fund house must also have an additional fund manager and must have at least 3 years of experience managing AUM of Rs 500 crore.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
VC funds get relief; MCX gets approval for electricity derivatives
The Securities and Exchange Board of India (Sebi) has modified its ex-parte interim order in the IndusInd Bank matter. In theorder, Sebi had stated that KPMG was appointed for an external validation of the discrepancy figures through a 'Board note' dated January 29, 2024. In a corrigendum issued on Friday, the market regulator replaced the term 'Board note' to 'Engagement Note' signed by the CFO and the then MD & CEO, and the deputy CEO. The market regulator had barred five officials from the bank in the alleged insider trading matter. liquidation period for VC funds extended The Sebi on Friday extended the liquidation period for venture capital (VC) funds migrating to the Alternative Investment Funds (AIFs) regulations by one year. The earlier deadline of July 19, 2025 has been extended to July 19, 2026. Sebi had earlier specified that VCFs which have schemes whose liquidation period has expired and are not wound up, and who migrate to AIF regulations will be granted additional period. Sebi has provided the additional period after representations from the industry. The last date of July 19 for legacy VCFs to migrate to AIF norms remains unchanged. Sebi has given approval to Multi-commodity Exchange (MCX) of India to launch electricity derivatives. The Electricity Derivatives Contracts will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the market. 'These contracts will offer participants a reliable, transparent, and regulated platform to manage power price risks, which are becoming more dynamic due to renewables and market-based reforms,' said Praveena Rai, MD & CEO, MCX. BS REPORTER
Economic Times
4 days ago
- Business
- Economic Times
Sebi extends timeline of additional liquidation period for VCFs migrating to AIF rules
Synopsis Markets regulator Sebi on Friday extended the additional liquidation timeline by one year till July 2026 for venture capital funds (VCFs) transitioning to alternative investment funds rules. Markets regulator Sebi on Friday extended the additional liquidation timeline by one year till July 2026 for venture capital funds (VCFs) transitioning to alternative investment funds rules. Tired of too many ads? Remove Ads Sebi, in August 2024, issued modalities and conditions for VCFs to migrate to the Alternative Investment Funds (AIFs) rules. This also allowed VCFs, with at least one scheme not yet wound up after the end of their liquidation period, an additional liquidation period until July 19, 2025, if they migrate to AIF Regulations. Based on industry feedback and to facilitate migration, Sebi has now extended this additional liquidation period to July 19, 2026, according to a circular issued on Friday. A 'Migrated VCF' is a VCF that transitions to become a sub-category of VCF under Category I - Alternative Investment Fund as per the AIF norms. The market watchdog reiterated that VCFs' transition to AIF regulations are given an additional liquidation period till July 19, 2025. Tired of too many ads? Remove Ads On application requirements, Sebi had stated that VCFs wishing to migrate must submit their original registration certificate and specific information as outlined by the regulator. Sebi had stated that after migration, existing investors, investments, and units will be transferred under the AIF Regulations without change.
&w=3840&q=100)
Business Standard
4 days ago
- Business
- Business Standard
Sebi extends timeline of addl liquidation period for VCFs migrating
Markets regulator Sebi on Friday extended the additional liquidation timeline by one year till July 2026 for venture capital funds (VCFs) transitioning to alternative investment funds rules. Sebi, in August 2024, issued modalities and conditions for VCFs to migrate to the Alternative Investment Funds (AIFs) rules. This also allowed VCFs, with at least one scheme not yet wound up after the end of their liquidation period, an additional liquidation period until July 19, 2025, if they migrate to AIF Regulations. Based on industry feedback and to facilitate migration, Sebi has now extended this additional liquidation period to July 19, 2026, according to a circular issued on Friday. A 'Migrated VCF' is a VCF that transitions to become a sub-category of VCF under Category I - Alternative Investment Fund as per the AIF norms. The market watchdog reiterated that VCFs' transition to AIF regulations are given an additional liquidation period till July 19, 2025. On application requirements, Sebi had stated that VCFs wishing to migrate must submit their original registration certificate and specific information as outlined by the regulator. Sebi had stated that after migration, existing investors, investments, and units will be transferred under the AIF Regulations without change. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Indian Express
19-05-2025
- Business
- Indian Express
RBI revises rules for investment in Alternative Investment Funds
The Reserve Bank of India (RBI) has revised draft guidelines for investments by regulated entities (REs) in Alternative Investment Funds (AIFs), aiming to enhance oversight and prevent potential misuse. Key proposals include capping a single RE's contribution to an AIF scheme at 10 per cent and limiting collective RE investments to 15 per cent in a single scheme. Investments up to 5 per cent of a scheme's corpus will not face additional restrictions. However, if an RE's investment exceeds 5 per cent and the AIF has downstream debt exposure to a borrower linked to the RE (excluding equity shares and certain convertible instruments), the RE must make a 100 per cent provision for its proportionate exposure. These guidelines are designed to mitigate risks and ensure prudent investment practices. Jyoti Prakash Gadia, managing director at Resurgent India, said the proposed revised guidelines of the RBI on AIF are intended to bring the regulatory compliance of the RBI directions in alignment those issued by Sebi on the subject. Taking into account the more robust and comprehensive structure provided under the SEBI guidelines, there was a scope and need for bringing in some relaxations
