The Securities and Exchange Board of India (Sebi) on Friday issued fresh guidelines to Alternative Investment Funds (AIFs) barring them from raising fresh capital from foreign investors who do not meet specified conditions.
At the time of on-boarding investors, the manager of an AIF will have to ensure the foreign investor is a resident of the country whose securities market regulator is a signatory to the International Organization of Securities Commission’s (IOSCO) Multilateral MoU or a signatory to the bilateral MoU with Sebi.
IOSCO has multilateral MoUs with the regulators of over 140 countries. Industry experts, while welcoming the decision,