The Securities and Exchange Board of India (Sebi) on Friday doubled the abroad funding restrict of different funding funds (AIFs) to $1.5 billion. The market regulator mentioned the choice was taken following session with the Reserve Bank of India (RBI).
In 2015, Sebi had created a $500-million allowance for abroad funding. However, home AIFs had been solely allowed to take a position a fourth of their corpus abroad. Also, abroad investments had been required to have an Indian connection. In 2018, the restrict was elevated from $500 million to $750 million.
Sebi’s round mentioned the abroad funding situations stay unchanged.
Industry gamers mentioned Sebi’s transfer will assist the Rs 4.4-trillion AIF business as the present allowance in lots of circumstances was getting totally utilized given the fast progress within the business.
“Doubling of the overseas investment allowance to $1.5 billion will enable Indian AIFs to invest overseas and generate strong returns for their investors. This will allow greater Indian participation in global companies and will accelerate the growth of the Indian AIF industry overall,” mentioned Siddarth Pai, Founding Partner of 3one4 Capital.
“The enhancement in limits is a positive move in these uncertain times which will open newer windows of opportunities for various AIFs for them to invest outside India and also allow the Indian investors to be a part of the global growth trajectory,” added Sahil Shah, Of Counsel, J Sagar Associates.