The Securities and Exchange Board of India (Sebi) is set to accelerate the launch process for Alternative Investment Funds (AIFs) and reinstate open-market buybacks during its board meeting scheduled for June 19, according to livemint.com. The regulator plans to reduce the waiting period for standard AIF schemes from 30 working days to just 10 days after filing, unless Sebi directs otherwise.
The proposals include easing intraday borrowing rules for mutual funds and removing the requirement for merchant-banker mandates on niche investment schemes. These measures aim to streamline regulatory processes and enhance market efficiency. The move to shorten the AIF launch timeline reflects Sebi’s intent to facilitate quicker fund mobilization and investment activities.
This initiative comes amid growing interest in alternative investments in India, where faster fund launches can attract more capital and improve liquidity. The reinstatement of open-market buybacks, which were previously suspended, is expected to provide companies with greater flexibility in managing their capital structures. These changes align with broader efforts to boost market dynamism and investor participation.
The Sebi board meeting on June 19 will finalize these proposals, marking a key regulatory update for the Indian investment landscape. Market participants will closely monitor the outcomes to gauge the impact on fund launches and buyback activities in the near term.