Regulatory Alerts2025-09-09
Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2025
The Securities and Exchange Board of India (SEBI) issued the Second Amendment Regulations, 2025, to introduce co-investment mechanisms for Category I and II Alternative Investment Funds (AIFs) and to revise the regulatory framework for Angel Funds. The amendments mandate that co-investments be executed through registered co-investment schemes or portfolio managers, require the filing of a Repayment Placement Memorandum via merchant bankers, and impose specific lock-in periods and investment limits on Angel Funds. Furthermore, the regulations update definitions, clarify the applicability of existing rules to Angel Funds, and adjust fee structures to align with the new operational requirements.
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