Registration of PE and Hedge Funds must
With an aim to manage unregulated funds, market regulator Sebi, on Tuesday, made it mandatory for Alternative Investment Funds (AIFs) like private equity funds and hedge funds, to register with it.
“All AIFs whether operating as private equity funds, real estate funds, hedge funds, etc must register with Sebi under the AIF Regulations,” the market regulator said while notifying the Sebi (AIFs) Regulations, 2012. AIF is a privately pooled fund which collects money from Indian or foreign investors, for investment.
“AIFs Regulations endeavour to extend the perimeter of regulation to unregulated funds with a view to systemic stability, increasing market efficiency, encouraging formation of new capital and consumer protection”, Sebi said while notifying Regulations.
SMC Global Research head Jagannadham Thunuguntula said, “It is for the first time that Sebi has included hedge funds in the pool of privately pooled investment vehicles,”