On May 09, 2025, the Securities and Exchange Board of India (“SEBI”) released a consultation paper proposing amendments to the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”), aimed at enhancing flexibility for Alternative Investment Funds (“AIFs”) to offer co-investment opportunities (“Consultation Paper”).[1]
The key proposal is to permit AIFs to establish Co-Investment Vehicles (“CIVs”) as separate schemes under the AIF structure, specifically for making co-investments under the AIF Regulations.
Additionally, SEBI has proposed removing the existing restriction on Investment Managers of AIFs from providing advisory services in listed securities, thereby potentially broadening their scope of services and aligning with global best practices.
SEBI has invited public comments on these and other related proposals outlined in the Consultation Paper. Stakeholders are encouraged to submit their feedback latest by May 30, 2025, through SEBI’s online web-based form.
[1] https://www.sebi.gov.in/reports-and-statistics/reports/may-2025/consultation-paper-on-providing-flexibility-to-aifs-to-offer-co-investment-opportunities-to-investors-within-the-aif-structure-under-aif-regulations_93883.html