INDIA’S MARKET POTENTIAL UNLOCKED: AN ANALYSIS OF THE SEBI ALTERNATIVE INVESTMENT FUND REGULATION 2012

Abstract The last decade in India has witnessed a tumultuous growth in a number of sectors ranging from infrastructure to information technology. This overall growth has led to the expansion of the Indian economy as a whole and has as such put the country in the global spotlight. India. What has made India one of the most attractive markets to invest in is not just the growth of the market but also the emergence of a number of successful startups that have taken the world by storm. Companies such as Zomato which is all of eight years old is now competing at a global scale with publicly traded giants such as yelp. The growth of both the capital market as well the venture capital market has brought the need for more favourable policies for investments in India which incentivises the set up of more Indian PE and VC funds. The maturity of the market coupled with the needs of investors has also brought about the need for investment vehicles that engage in more complex and rewarding investments such as hedge funds, a concept which has been almost absent in the India. This article provides an in depth analysis of the SEBI (Alternative Investment Funds Regulations) 2012 which highlights the welcome changes in investment reform. This regulation is exceedingly important given that it provide the legal framework for the establishment and functioning of PE and VC funds.