2025-09-09

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Framework for AIFs to make co-investment within the AIF structure under SEBI (Alternative Investment Funds) Regulations, 2012

The Securities and Exchange Board of India amended the Alternative Investment Funds Regulations, 2012, to permit Category I and II AIFs to offer co-investment facilities through a separate CIV scheme. This framework establishes operational modalities including ring-fenced assets, a three-times leverage cap for most investors, and prohibitions on borrowing or leverage within the CIV scheme. Compliance requires filing a shelf placement memorandum, adhering to implementation standards from the Standard Setting Forum, and ensuring the co-investment does not bypass direct regulatory disclosures or eligibility requirements.

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