Mis-selling, valuation key threats for AIFs: Pandey

WHILE ALTERNATIVE INVESTMENT fund (AIF) investments have seen massive growth over half a decade, the industry still faces three major challenges such as mis-selling, opaque valuation, and capital availability for sunrise sectors, the Indian markets regulator said.

- ANJANA THERESE ANTONY

AIFs are meant for sophisticated investors and risk profiling must become a real discipline, “not a box-ticking exercise”, Securities and Exchange Board of India (Sebi) Chairman Tuhin Kanta Pandey said.

The industry can do much more to back innovation-led sectors and early-stage businesses. “If private capital stays too conservative, a core purpose of the AIF framework is lost,” Pandey said while speaking at the Indian Venture and Alternate Capital Association (IVCA) conclave.