Are hedge funds regulated and what are the regulatory requirements?
Curious about hedge funds
In India, hedge funds are regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012. These regulations provide the framework for the registration and operation of hedge funds and other alternative investment funds (AIFs) in India.
Under these regulations, hedge funds must be registered with SEBI and comply with various disclosure and reporting requirements. Hedge funds must also have a custodian and a manager, who must be approved by SEBI.
SEBI also regulates the investment strategies and limits of hedge funds. For example, hedge funds are not allowed to invest more than 25% of their assets in a single security or issuer. They are also required to maintain a minimum net worth of INR 20 crore.
Overall, the regulatory requirements for hedge funds in India are designed to protect investors and ensure that hedge funds operate in a transparent and responsible manner.