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<h1>SEBI Sets Investment Conditions for Category I AIFs, Including 75% Allocation in Unlisted Equity or SME Exchanges</h1> The Securities and Exchange Board of India (SEBI) outlines specific investment conditions for Category I Alternative Investment Funds (AIFs) under its 2012 regulations. These funds can invest in various entities, including venture capital undertakings, special purpose vehicles, and limited liability partnerships. They may engage in hedging activities but are restricted from borrowing or leveraging funds, except for temporary needs. Venture capital funds must invest at least 75% in unlisted equity or SME exchanges. SME funds and social impact funds have similar investment thresholds, with specific exemptions from insider trading regulations. Infrastructure funds must allocate 75% to infrastructure-related projects.