The Alternative Investment Fund (AIF) industry, especially the Category 3 funds community, has become a worried lot ever since the Securities and Exchange Board of India (Sebi) came out with a discussion paper, proposing a ‘New Asset Class’.
While it is believed that the proposed new asset class could be a game-changer by pulling away investors from unregistered and unauthorised investment products, there is also talk among Category 3 AIF managers that a potential tax advantage could lead to some of their investors routing a part of their money towards the new option.
