Enhancing the participation of domestic institutional investors such as insurers and pension funds in Category II Alternative Investment Funds (AIFs) would be high on SEBI’s agenda when the board of the securities market regulator meets on Saturday.
All SEBI has to do is to ensure that its fellow regulators, IRDA and PFRDA, issue the requisite clarifications in order to align them with SEBI regulations, thereby enabling insurers and pension funds to invest in Category II AIFs.
IRDA in 2013 and PFRDA in 2016 had issued circulars which enable the insurers and pension funds to allocate funds for investing in AIFs.
This follows the second report submitted by the Alternative Investment Policy Advisory Committee led by Infosys Founder NR Narayana Murthy.
