Synopsis
Mumbai, March 24 (NationPress) The Securities and Exchange Board of India (SEBI) has eased investment regulations for Category II AIFs, allowing investments in listed debt securities rated 'A' or below. This change aims to adapt to market conditions and provide more investment avenues.Key Takeaways
- SEBI has relaxed investment norms for Category II AIFs.
- Funds can invest in listed debt securities rated 'A' or lower.
- This move addresses the reduced availability of unlisted debt securities.
- SEBI aims to enhance investment opportunities and compliance.
- Over 70,000 misleading posts have been removed from social media.
Mumbai, March 24 (NationPress) The Securities and Exchange Board of India (SEBI) announced on Monday that it has relaxed investment regulations for Category II Alternative Investment Funds (AIFs), enabling them to invest in listed debt securities that are rated 'A' or lower.
This initiative is designed to respond to evolving market conditions and expand the investment options for these funds.
In a statement following a board meeting, SEBI indicated that such investments will be regarded as equivalent to investments in unlisted securities when assessing compliance with the minimum investment requirements.
SEBI stated, "Investments of Category II AIFs in listed debt securities rated A or below will be treated as akin to investments in unlisted securities for the purpose of their compliance with minimum investment conditions in unlisted securities."
Category II AIFs include private equity funds, debt funds, and infrastructure funds, which are primarily intended to invest in unlisted securities and are required to allocate over 50 percent of their funds to such investments.
However, a recent amendment to the Listing Obligations and Disclosure Requirements (LODR) Rules has curtailed the availability of unlisted debt securities, constraining the investment scope for these funds.
To mitigate this issue, SEBI proposed a modification through a consultation paper on February 7, 2025.
This new decision permits these funds to invest in listed securities that pose a higher risk, provided they maintain a credit rating of 'A' or below.
This adjustment is anticipated to provide enhanced flexibility to Category II AIFs while ensuring that they remain focused on securities with comparable risk profiles.
In related news, last week the market regulator announced it has taken stringent measures against misleading content on social media, removing over 70,000 posts and accounts since October 2024.
This action is part of SEBI's ongoing efforts to combat misinformation and regulate online financial influencers.
SEBI has been collaborating closely with social media platforms to ensure misleading content does not misguide investors.
