Understanding Investment Funds in India: Category I & II Under SEBI and IFSC Regulations 2012 & 2019
An "Investment Fund" in India refers to a fund established as a trust, company, limited liability partnership, or body corporate, registered as a Category I or II Alternative Investment Fund. It is regulated by the SEBI (Alternative Investment Fund) Regulations, 2012, or the IFSC Authority Act, 2019. Category I funds focus on start-ups, small-medium enterprises, and socially or economically viable projects, including venture capital and infrastructure funds. Category II funds invest in equity and debt securities, such as private equity and debt funds.