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AIFs may face regulatory issues over ‘foreign’ investment panels

AIFs may face regulatory issues over ‘foreign’ investment panels
AIFs may face regulatory issues over ‘foreign’ investment panels
In September 2020, Sebi said ICs would be treated on a par with the sponsors and fund managers in terms of liability.

Synopsis

Presence of foreign investors in committees could be seen as ‘control’, triggering different rules

Mumbai: Foreign investors serving on the investment committees (IC) of private equity funds face uncertainty as it is not clear whether such appointments will be construed as ‘control’ under the non-debt instrument rules.Multiple people with direct knowledge of the matter told ET that if regulators link such appointments to control, several Alternative Investment Funds (AIFs) will effectively become foreign entities, causing downstream
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