Framework for AIFs to make co-investment within the AIF structure under SEBI (Alternative Investment Funds) Regulations, 2012

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.... on September 09, 2025 to permit Category I and Category II AIFs to offer co-investment facility to accredited investors by launching a separate co-investment scheme ("CIV scheme") within AIF Regulations. This is in addition to the co-investment currently being facilitated to investors of AIFs through Co-investment Portfolio Managers under SEBI (Portfolio Managers) Regulations, 2020 ("PMS route"). 2. In terms of sub-regulation 7 of regulation 17A of AIF Regulations, co-investment through a CIV scheme shall be carried out by manager of Category I or Category II AIFs in the manner and subject to the conditions as may be specified by the Board from time to time. In this regard, below mentioned operational modalities are being specified by t....

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....tee company by such scheme of AIF, such investor shall not be allowed to co-invest in the said investee company. 2.6. The manager shall ensure that the CIV scheme does not make any investment: 2.6.1. that would lead to its investors acquiring or holding an interest/exposure in an investee company indirectly, that they cannot acquire or hold directly, 2.6.2. that would necessitate additional regulatory disclosure if they had invested directly 2.6.3. where the investee company cannot receive investments from such investor directly. 2.7. CIV Scheme shall not borrow funds directly or indirectly or engage in any kind of leverage. 2.8. Investors of a CIV scheme shall have rights in the investment of the CIV scheme and in the dis....