Alternative Investment Funds (AIFs)

Date: July 06, 2015

foreign investment FDI FII

Alternative Investment Funds (AIFs) are funds incorporated in India for the purpose of pooling in capital from Indian investors. In this year’s budget Arun Jaitley announced that foreign investors would also be allowed to invest in the AIFs.

AIFs are regulated by SEBI and it includes private equity, venture capital and hedge funds.

The RBI which regulates Foreign Exchange Management, will make necessary changes in the regulations to ensure that the foreign investment in AIFs is in compliance with the existing FDI policy.

The government, in order to attract greater foreign capital inflows through Alternative Investment Funds (AIFs), is considering changes to the foreign exchange regulations to make such investments easy.


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