The SEBI board at a meeting on March 25, 2021 approved a raft of changes in SEBI (Alternative Investment Funds) Regulations, 2012.

Firstly, the board has decided to provide a definition of ‘startup’ as specified by Government of India for the purpose of investment by Angel Funds.

Secondly, it has been decided to remove the list of restricted activities or sectors from the definition of Venture Capital Undertaking to provide flexibility to Venture Capital Funds registered under Category I Alternative Investment Funds (AIFs) in making investments.

Thirdly, AIFs, including Fund of AIFs, have been allowed to simultaneously invest in units of other AIFs and directly in securities of investee companies subject to certain conditions.

Fourthly, it has been decided to provide clarity on scope of responsibilities of Managers and members of Investment Committees; and also prescribe a Code of Conduct for AIF, Trustee and directors of the Trustee/Designated Partners/directors of the AIF, Manager, members of Investment Committee and key management personnel of AIF and Manager.