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Harshita Fatesaria

Associate in the Investment Funds Practice at Mumbai office of Cyril Amarchand Mangaldas. Harshita has assisted with set-up, documentation and registration of AIFs in India. She has also worked on mandates representing institutional investors in their investment in domestic funds. She can be reached at harshita.fatesaria@cyrilshroff.com

 

RBI NOTIFIES RESTRICTIONS ON INVESTMENTS BY REGULATED ENTITIES IN AIFS

Summary: In a decisive move to recalibrate institutional investments and fortify the financial ecosystem, the Reserve Bank of India (RBI) has released the RBI (Investment in AIF) Directions, 2025. These comprehensive guidelines overhaul the existing framework governing how regulated entities (REs) such as banks, NBFCs, and other financial institutions allocate capital to Alternative Investment Funds (AIFs). With stricter exposure caps, mandatory provisioning requirements, and sharper focus on investment-linked risk, the Directions signal a more cautious regulatory stance—aimed at mitigating systemic vulnerabilities and curbing potential misuse of AIF structures. This blog unpacks the key provisions, their far-reaching implications, and the strategic shifts mandated for REs.Continue Reading RBI notifies restrictions on investments by regulated entities in AIFs’

FVCI Regulations

Introduction

The Securities and Exchange Board of India (“SEBI”) has released a consultation paper[1] on May 18, 2023 suggesting changes to the regulatory framework for registration and eligibility of Foreign Venture Capital Investors (“FVCIs”). Public comments have been invited on the consultation paper.

SEBI’s proposals are broadly to align the conditions under the SEBI (Foreign Venture Capital Investor) Regulations, 2000 (“FVCI Regulations”) with certain conditions under the SEBI (Foreign Portfolio Investors) Regulations, 2019 (“FPI Regulations”), and with a view to ensure adequate due-diligence and regulate the inflow of foreign capital in India through the FVCI route.Continue Reading FVCI Regulations 2.0: SEBI Proposes to revise FVCI Registration and Eligibility Conditions

Introduction

The Securities and Exchange Board of India (“SEBI”) released five consultation papers on proposed changes in regulatory norms for alternative investment funds (“AIFs”), inviting comments from the public, on February 03, 2023. These consultation papers indicate the next generation of regulatory reforms that SEBI has planned for AIFs.Continue Reading SEBI Unveils Next Generation Reforms for AIFs