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Informist, Tuesday, Sept. 9, 2025

 

MUMBAI – The Securities and Exchange Board of India has allowed category I and category II alternative investment funds to offer co-investment facility to investors by launching a separate co-investment scheme, the regulator said in a circular on Tuesday. Managers of these funds shall make co-investment for an investor in an investee company either through the existing portfolio managers route or the new co-investment scheme route, the SEBI said. 

 

The manager shall also ensure that the scheme does not make any investment that would lead to its investors acquiring or holding an interest/exposure in an investee company indirectly. The investment should not be made if it would necessitate additional regulatory disclosure had they invested directly and if the investee company cannot receive investments from such investors directly, the SEBI said. 

 

The co-investment scheme shall not borrow funds directly or indirectly or engage in any kind of leverage, the regulator said. Investors of the scheme shall have rights in the distribution of proceeds of the investment, pro-rata to their contribution to the CIV scheme, it said. Any expenses associated with co-investment, shall be shared proportionately between the scheme of the alternative investment fund and the co-investment scheme in the ratio of their investments, SEBI said.  End

 

Reported by Kabir Sharma

Edited by Deepshikha Bhardwaj

 

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