SEBI to work closely with PEs in addressing concerns
The Securities and Exchange Board of India (SEBI) planned to work closely with the private equity and venture capital firms in addressing concerns of the industry. One such concern was several anomalies in tax and regulation due to the new regulations of the Alternative Investment Fund (AIF).
Previously, the industry was unregulated. The new regulations came into effect only last May 2012. "We need to interact and understand each other's concerns. We need to talk and move forward," said UK Sinha, SEBI chairman.
"We have received representations asking why there is a ceiling of Rs 2.5 million for employees. We are open to reconsider this provision," said Sinha. The investment threshold of AIF employees or directors was INR25 lakh. The regulations stated that an AIF should have only a maximum of 1,000 investors and a minimum corpus of INR20 crore.
Last Tuesday, the industry formally met with the regulator at the IVCA conclave 2013. The industry laid out its concerns regarding tax pass extension, rupee fund raising, and capital structure flexibility for fund managers.
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