Securities And Exchange Board Of India - Subsection
Section 16(1) in Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
(1)The following investment conditions shall apply to all Category I Alternative Investment Funds:-(a)Category I Alternative Investment Fund shall invest in investee companies or venture capital undertaking or in special purpose vehicles or in limited liability partnerships or in units of other Alternative Investment Funds as specified in these regulations;(b)Fund of Category I Alternative Investment Funds may invest in units of Category I Alternative Investment Funds of same sub-category:Provided that they shall only invest in such units and shall not invest in units of other Fund of Funds:Provided further that the investment conditions as specified in sub-regulations (2), (3), (4) or (5) shall not be applicable to investments by such funds.(c)Category I Alternative Investment Funds shall not borrow funds directly or indirectly or engage in any leverage except for meeting temporary funding requirements for not more than thirty days, on not more than four occasions in a year and not more than ten percent of the corpus.
