Background:
In 2015, the SEBI had allowed the overseas investment by AIFs and VCFs to the extent of $500 million i.e. up to 25 percent of their investable corpus and later it was increased to $750 million in 2018.
Key points:
i.The current increase in the limit will increase the Indian’s participation in global companies and accelerate the growth of the Indian AIF industry.
ii.The AIF industry has averaged a compounded annual growth rate(CAGR) of 491% between December 2012 and December 2020, to reach Rs 4.42 trillion.
Other regulations on Overseas Investment(unchanged):
i.AIFs/ VCFs should report the utilization of the overseas limits within 5 working days of such utilization on SEBI’s portal.
ii.If an AIF / VCF has not utilized the granted overseas limit within a period of 6 months from the date of SEBI approval (validity period) then that should be reported within 2 working days after expiry of the validity period.
iii.If an AIF/ VCF wishes to surrender the overseas limit at any point of time within the validity period, then that should be reported within 2 working days from the date of the decision to surrender the limit.
Recent Related News:
SEBI has issued guidelines for preparing warehousing norms by Clearing Corporations(CCs) for agricultural/agro-processed goods and non-agricultural goods (base and industrial metals).
About Securities and Exchange Board of India (SEBI):
Establishment – On April 12, 1992, in accordance with the SEBI Act, 1992.
Headquarters – Mumbai, Maharashtra
Chairman – Ajay Tyagi