Expanded Investment Horizons: SEBI Regulation 17 Redefines Category II AIF Investment Strategies and Disclosure Norms

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Full Text of the Document

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....The SEBI Amendment Regulations, 2025 modify the Alternative Investment Funds (AIF) regulatory framework, specifically amending Regulation 17. The amendment clarifies that Category II AIFs shall invest in investee companies or units of Category I or other Category II AIFs as disclosed in the Placement Memorandum. The regulation introduces an explanatory clause specifying that such funds shall primarily invest in unlisted securities and/or listed debt securities rated 'A' or below, either directly or through units of other Alternative Investment Funds, in a manner prescribed by the regulatory board. The amendment aims to provide greater clarity and guidance for investment strategies of Category II Alternative Investment Funds.....