Latest news with #LVFs
Business Standard
6 days ago
- Business
- Business Standard
SEBI proposes grant of significant flexibilities to large value funds for accredited investors
In a recently issued consultation paper, the Securities and Exchange Board of India (SEBI) has proposed a number of relaxations for large value funds (LVFs) under the alternative investment funds framework. Apart from other things, the relaxations also include a reduction in minimum investment requirement to Rs 25 crore from the current Rs 70 crore. The aim of introducing these changes was to widen investor participation and cut compliance costs. The proposal to lower the investment threshold is expected to attract more domestic institutional players such as insurance companies, thereby diversifying the investor base. The changes proposed by the SEBI follow from the recommendations from the market regulators Alternative Investment Policy Advisory Committee and the Ease of Doing Business Working Group. According to the working group, the present LVF threshold of Rs 70 crore is too high and many investors, including some institutional investors, have limitations on the quantum. Apart from relaxing the minimum investment threshold, SEBI has proposed exempting LVFs from several compliance requirements. These include the need to follow the standard template for private placement memoranda (PPM), mandatory annual audits of PPM terms, and the responsibility placed on investment committee members for approving fund decisions. For LVF-only schemes, the market regulator may also waive off the NISM certification mandate for key investment team members of fund managers. Further, the regulator has proposed removing the cap of 1,000 investors per AIF scheme for LVFs, citing the large ticket size and the accredited investor base as sufficient safeguards. For existing AIM schemes, whose investors meet LVF criteria, SEBI has proposed the grant of approval to them for converting into LVFs with the consent of all investors. This would enable them to benefit from the proposed relaxations. The securities markets regulator stated that LVFs have seen steady traction since their introduction in August 2021. Lowering of entry barriers could see LVFs play a bigger role in channelling long-term investments, especially in the case of unlisted securities.
Time of India
10-08-2025
- Business
- Time of India
Sebi for easing AIF rules, lowering minimum investment limit for LVFs
Live Events The Securities and Exchange Board of India (Sebi) has proposed several changes to the alternate investment fund (AIF) regulations, including lowering the minimum investment threshold for large value funds and a separate type of AIF scheme that would admit only accredited regulator has suggested relaxations to large value funds (LVFs) such as reduction of the minimum investment amount from ₹70 crore to ₹25 crore, removal of restriction on maximum number of investors in LVFs and exemption from the mandatory requirement of annual audit of the terms of PPM (private placement memorandum).It also proposed to provide the option to existing AIF schemes to avail the benefits available to the LVFs and convert themselves to LVF schemes with appropriate investor are alternative investment funds or schemes of an AIF in which each investor is an accredited investor and invests not less than ₹70 regulator said accredited investors are considered sophisticated enough to understand the risks associated with investment products and also have the ability to negotiate the necessary risk mitigation norms with the investment provider in their client has been observed that traction in LVF has improved since its introduction in August 2021. As of June 30, there are 62 LVF schemes, with commitments over ₹1.34 lakh crore. These schemes have made investments worth nearly ₹60,000 crore, according to Sebi data. It said to further facilitate channelising long term and sizable investments particularly in unlisted securities, reduction in the threshold of investment merits consideration."...lowering the minimum threshold to ₹25 crore for LVF scheme is expected to broaden the investor base without compromising on the level of investor sophistication," Sebi said in a discussion paper. Besides, lower entry barriers would facilitate improved fund raising for AIFs.
Economic Times
09-08-2025
- Business
- Economic Times
Sebi proposes lower entry threshold for large-value AIFs at Rs 25 crore
In a consultation paper issued on Friday, the regulator said the changes aim to widen investor participation and cut compliance costs. The proposals follow recommendations from Sebi's Alternative Investment Policy Advisory Committee and the Ease of Doing Business Working Group. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets regulator Sebi has proposed a slew of relaxations for large value funds (LVFs) under the alternative investment funds framework , including reduction in minimum investment requirement to Rs 25 crore from the current Rs 70 a consultation paper issued on Friday, the regulator said the changes aim to widen investor participation and cut compliance proposals follow recommendations from Sebi's Alternative Investment Policy Advisory Committee and the Ease of Doing Business Working key proposal is to lower the investment threshold to Rs 25 crore, which the regulator said will attract more domestic institutional players such as insurance companies and diversify the investor present, the working groups highlighted that LVF threshold of Rs 70 crore is too high and many investors, including some institutional investors, have limitations on the has also proposed exempting LVFs from several compliance requirements, including the need to follow the standard template for private placement memoranda (PPM), mandatory annual audits of PPM terms, and the responsibility placed on investment committee members for approving fund NISM certification mandate for key investment team members of fund managers may also be waived for LVF-only the regulator has proposed removing the cap of 1,000 investors per AIF scheme for LVFs, citing the large ticket size and the accredited investor base as sufficient also recommended allowing existing AIF schemes, whose investors meet LVF criteria, to convert into LVFs with the consent of all investors. This would enable them to benefit from the proposed markets watchdog noted that LVFs have seen steady traction since their introduction in August 2021, but could play a bigger role in channelling long-term investments, especially into unlisted securities, if entry barriers are Securities and Exchange Board of India has invited public comments on the proposals till August 29.
Time of India
09-08-2025
- Business
- Time of India
Sebi proposes lower entry threshold for large-value AIFs at Rs 25 crore
Academy Empower your mind, elevate your skills Markets regulator Sebi has proposed a slew of relaxations for large value funds (LVFs) under the alternative investment funds framework , including reduction in minimum investment requirement to Rs 25 crore from the current Rs 70 a consultation paper issued on Friday, the regulator said the changes aim to widen investor participation and cut compliance proposals follow recommendations from Sebi's Alternative Investment Policy Advisory Committee and the Ease of Doing Business Working key proposal is to lower the investment threshold to Rs 25 crore, which the regulator said will attract more domestic institutional players such as insurance companies and diversify the investor present, the working groups highlighted that LVF threshold of Rs 70 crore is too high and many investors, including some institutional investors, have limitations on the has also proposed exempting LVFs from several compliance requirements, including the need to follow the standard template for private placement memoranda (PPM), mandatory annual audits of PPM terms, and the responsibility placed on investment committee members for approving fund NISM certification mandate for key investment team members of fund managers may also be waived for LVF-only the regulator has proposed removing the cap of 1,000 investors per AIF scheme for LVFs, citing the large ticket size and the accredited investor base as sufficient also recommended allowing existing AIF schemes, whose investors meet LVF criteria, to convert into LVFs with the consent of all investors. This would enable them to benefit from the proposed markets watchdog noted that LVFs have seen steady traction since their introduction in August 2021, but could play a bigger role in channelling long-term investments, especially into unlisted securities, if entry barriers are Securities and Exchange Board of India has invited public comments on the proposals till August 29.
News18
09-08-2025
- Business
- News18
Sebi proposes lower entry threshold for large-value AIFs at Rs 25 cr
Agency: PTI New Delhi, Aug 9 (PTI) Markets regulator Sebi has proposed a slew of relaxations for large value funds (LVFs) under the alternative investment funds framework, including reduction in minimum investment requirement to Rs 25 crore from the current Rs 70 crore. In a consultation paper issued on Friday, the regulator said the changes aim to widen investor participation and cut compliance costs. The proposals follow recommendations from Sebi's Alternative Investment Policy Advisory Committee and the Ease of Doing Business Working Group. The key proposal is to lower the investment threshold to Rs 25 crore, which the regulator said will attract more domestic institutional players such as insurance companies and diversify the investor base. At present, the working groups highlighted that LVF threshold of Rs 70 crore is too high and many investors, including some institutional investors, have limitations on the quantum. Sebi has also proposed exempting LVFs from several compliance requirements, including the need to follow the standard template for private placement memoranda (PPM), mandatory annual audits of PPM terms, and the responsibility placed on investment committee members for approving fund decisions. Sebi also recommended allowing existing AIF schemes, whose investors meet LVF criteria, to convert into LVFs with the consent of all investors. This would enable them to benefit from the proposed relaxations. The markets watchdog noted that LVFs have seen steady traction since their introduction in August 2021, but could play a bigger role in channelling long-term investments, especially into unlisted securities, if entry barriers are lowered. The Securities and Exchange Board of India has invited public comments on the proposals till August 29. PTI HG TRB view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
