A growing penchant for unlisted investments among affluent investors, along with a new breed of entrepreneurs seeking easier access to capital, has led to a near doubling in the number of Alternative Investment Funds (AIFs) registered in India, taking the capital committed to over Rs. 11,000 crore in December.

AIFs were introduced by the Securities and Exchange Board of India (Sebi) in May 2012 to create and regulate different investment avenues for wealthy investors and channelize money into capital-starved businesses.

As many as 93 AIFs were registered with Sebi at the end of December, compared with just 42 on 31 March, according to Sebi data. Nine applications for new AIFs are pending.

The total capital commitment across all registered AIFs stood at Rs.11,186.36 crore, with commitments worth Rs.5,528.91 crore under so-called category I,Rs.4,821.58 crore under category II and the rest under category III. To be sure, while the capital commitment has risen to above Rs.11,000 crore, the actual amount raised was much lower at Rs.2,907.03 crore.

Category I AIFs can include venture capital funds, small and medium enterprises funds, social venture funds and infrastructure funds, Sebi’s rules say.

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Article source: Livemint



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