Sebi is studying the regulatory framework in overseas jurisdictions for alternative investment funds (AIFs) as the watchdog looks to improve existing norms for such class of investors.
"We are studying particularly important jurisdictions like the US, Australia or New Zealand to find out how the accredited investors have defined what are the kind of crucial treatment and what are the risks with these investors.
"The process is still on but this is going to be a very modern step. Sebi will be working on this and definitely look forward for further suggestions," Sebi Whole Time Member G Mahalingam said at an IVCA event.
AIFs are funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.
Accredited investors can add a lot of value to the AIF industry, Mahalingam was quoted in a statement issued by Indian Private Equity & Venture Capital Association (IVCA).
"Availability of performance data is very important for investors to at least know what the sector does across. The emphasis should be on following the best practise, instead of jumping on to a new trend bandwagon," TVS Capital MD and IVCA Chairman Gopal Srinivasan said.
Joanne Murphy, MD, Asia Pacific at CAIA Association said that India is not on a backfoot as compared to the world in terms of GDP and quality of manforce alongside technology.
"The slew of emerging startups is a proof of how local-grown talent is making its presence felt globally.
However, still initial funding may be difficult to access, for greenhorn companies," he added.