Angels and their demons: India must redo its overseas investment policy for AIFs
₹25 lakh in some cases. An AIF though is still required to apply for clearance.
In response to a question by Lets Venture Advisors LLP (investment manager of LV Angel Fund), Sebi stated that it is willing to exempt funds if they receive shares from another fund or startup for reasons such as restructuring, and no new transactions or fresh investments are being made. This informal guidance offers little respite to angel funds looking at overseas investments, given on the current application queue.
The worry is that due to all this uncertainty around AIF investments, they may be deprived of overseas investment opportunities. To expedite investment timelines, funds prefer to be based abroad.
Resident individuals also prefer to invest through foreign vehicles. Indian regulators should revise investment policies to enable funds based in India to make the most of all opportunities.
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