Sebi to approve most of Murthy panel recommendations

The Securities and Exchange Board of India (Sebi) is likely to relax rules for investing in alternative investment funds (AIFs) on the suggestions of an expert panel headed by Infosys founder NR Narayana Murthy, said sources close to the development   Stock Market Trading Tips

AIFs are funds established or incorporated in India for the purpose of pooling capital by Indian and foreign investors for predetermined investing. The rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds.   Himanshu Tiwari Astrologer Blog
The minimum ticket size for investing in AIFs is Rs 1 crore. Individuals with an annual income of Rs 50 lakh are allowed to invest in these vehicles. The Sebi board is likely lower these criteria.  The Murthy panel submitted its report to the market regulator in January. It proposed a favourable tax environment for investors, promoting onshore fund management, and changing the regulatory regime.The panel also recommended lower taxes. AIFs attract 10 per cent long-term capital gains tax on transfer of shares of private limited companies.    Financial Astrology

Sector players have been asking Sebi to repeal all investment management regulations such as AIF Regulations, PMS Regulations, Advisers Regulations and replacing them with a single AIF Manager Regulations. Chitlangi said such a move would be premature and might not be considered by Sebi.

Introduction of the securities transaction tax on private equity and venture capital investments is also part of the committee’s proposals.Amit Maheshwari, partner, Ashok Maheshwary & Associates, said easing AIF regulations would provide start-ups broader access to capital.  The current funding slowdown could be offset by these regulatory changes, he added.The Sebi board is also likely to ease foreign portfolio investors (FPI) regulations. Only funds that are registered and regulated in their home market are now allowed to invest in India.    Personal Numerology