Sebi relaxes rules for infra debt funds

Nov 30 2013, 00:13 IST
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SummarySebi said on Friday it would allow foreign feeder funds that get at least 20% of their managed assets from long-term investors.

India's market regulator relaxed fundraising rules on Friday for infrastructure debt mutual funds in its continued bid to channel long-term capital to finance the country's highways, toll roads and bridges.

Sebi said on Friday it would allow foreign feeder funds that get at least 20% of their managed assets from long-term investors such as sovereign wealth funds and pension funds to qualify as "strategic investors".

That distinction is important given Sebi requires these infrastructure debt funds (IDFs), which operate as mutual funds, to get a minimum commitment of Rs 25 crore from strategic investors before launching.

IDFs were first announced in 2011 by the then FM Pranab Mukherjee to channel long-term capital to fund India's infrastructure needs.

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