Budget 2015: Govt permits foreign investment in real estate, PE and hedge funds

The government will allow foreign investment in Alternative Investment Funds (AIFs), a category of pooled-in investment vehicles for real estate, private equity and hedge funds, Finance Minister Arun Jaitley said today.

Allowing more foreign money in. ReutersAllowing more foreign money in. Reuters

While presenting the Budget for 2015-16 in the Lok Sabha, he said that the government would do away with different categories like Foreign Portfolio Investors (FPI) and Foreign Direct Investment (FDI) for such investments with a view to making it easier for overseas investors to invest in AIFs.

AIFs are basically funds established or incorporated in India for the purpose of pooling in capital from Indian investors for investing as per a pre-decided policy.

Under Sebi guidelines, AIFs can operate broadly in three categories. The Sebi rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.

Read full story: Budget 2015: Govt permits foreign investment in real estate, PE and hedge funds