The Securities and Exchange board of India on 25th June 2021 has notified the framework for AIFs to invest simultaneously in units of other AIFs and directly in securities of investee companies.
The AIFs may invest in an Investee Company up to a specified limit, directly or through investment in the units of other AIFs without labelling themselves as a Fund of AIFs.
Existing AIFs may also invest simultaneously in securities of investee companies and in units of other AIFs, subject to appropriate disclosures in the Private Placement Memorandum (PPM) and with the consent of at least two-thirds of unit holders by value of their investment in the AIF in terms of Regulation 9(2) of the AIF Regulations.
