The Securities and Exchange Board of India (Sebi) plans to define outer limits for the life of close-ended alternative investment funds (AIFs). The regulator is also in favour of putting a cap on the extensions that can be taken by large value funds (LVFs), which pool in money from accredited investors.
The regulator may propose fixing a maximum tenure of 30 years for category I funds, 20 years for category II funds and 12 years for category III close-ended funds, people in the know said. The fixed period will include fund extensions and may be applicable for LVFs too.
