CORPORATE
SEBI relaxes norms for AIFs, FPIs to boost investments and ease compliance
- IBJ Bureau
- Jun 19, 2025
SEBI has permitted co-investment opportunities in unlisted securities under the AIF framework and cleared the proposal to do away with prohibition on alternative investment funds (AIF) investment managers from providing advisory services in listed securities. The markets regulator’s measures are aimed at increasing operational flexibility and reducing compliance burden on AIF players.
Co-investment refers to an industry practice that allows certain AIF investors to own additional shares in the investee companies that they buy in their individual capacity, besides investing in the unlisted securities through the fund.
In its board meeting on Wednesday, the SEBI approved several important proposals aimed at streamlining regulations, easing compliance and boosting investment activity across sectors.
The markets regulator introduced a separate voluntary delisting framework specifically for public sector undertakings (PSUs), where the government holds a stake of 90 per cent or more. Under this new framework, delisting will occur through a fixed-price process, with the price set at least 15 per cent above the floor price. This mechanism is designed to ensure fair value for minority shareholders while providing a clear exit route.
In a bid to encourage greater foreign investment in Indian government bonds (IGBs), the SEBI relaxed compliance norms for foreign portfolio investors (FPIs) who invest exclusively in these securities. A notable change allows custodians to avoid setting up separate entities for financial services, lowering operational hurdles and potentially attracting more foreign capital.
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