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Mumbai: The Securities and Exchange Board of India(Sebi) is awaiting approval of finance ministry and Reserve Bank of India(RBI) for allowing foreigners to join the investment management committee of Indian private equity and venture capital funds.
Sebi said they have approached the government and RBI seeking clarity on the applicability of exchange control framework on investments by alternative investment funds whose investment committee approves investment decisions and consists of external members who are foreigners.
ET in its edition dated October 21, had reported that outsiders may be inducted on the investment committees and Sebi has written to government and RBI on the subject.
Sebi on Thursday said pending clarification the applications wherein investment committee proposed to be constituted to approve investment decisions of AIF includes external members who are ‘resident Indian citizens', would be processed. However, in case of applications wherein investment committee proposed to be constituted to approve investment decisions of AIF includes external members who are not ‘resident Indian citizens’, would be considered only after receipt of clarification from the government and RBI.
Sebi said they have approached the government and RBI seeking clarity on the applicability of exchange control framework on investments by alternative investment funds whose investment committee approves investment decisions and consists of external members who are foreigners.
ET in its edition dated October 21, had reported that outsiders may be inducted on the investment committees and Sebi has written to government and RBI on the subject.
Sebi on Thursday said pending clarification the applications wherein investment committee proposed to be constituted to approve investment decisions of AIF includes external members who are ‘resident Indian citizens', would be processed. However, in case of applications wherein investment committee proposed to be constituted to approve investment decisions of AIF includes external members who are not ‘resident Indian citizens’, would be considered only after receipt of clarification from the government and RBI.
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