AIF investments in Mauritius, Singapore and Honk Kong under Sebi lens

Regulator rejects overseas investments proposals of funds that fail to meet set parameters

The Securities and Exchange Board of India (Sebi) is scrutinising overseas investments made by alternative investment funds (AIFs), especially in regions such as Mauritius, Singapore, and Hong Kong. The capital market regulator has even turned down applications proposing to make substantial investments outside of India, said two persons in the know.

Sources said besides AIFs, overseas investment proposals of some wealth managers, banks, and non-banking financial companies (NBFCs), too, have got rejected and are facing greater scrutiny. 

This follows inputs from the government and other central agencies on the possible misuse of the conditions guiding such investments as laid out under the