PE Firms Urge Sebi to Reconsider Co-Investor Exit Rules

Co-investors seek additional exposure to a particular investment made by an AIF

- Ranjani Raghavan & Sneha Shah

India-based venture capital and private equity firms have petitioned the Securities and Exchange Board of India (Sebi) to reconsider rules that mandate their co-investors exit alongside the fund, three people familiar with the development said.

Co-investors are those who typically want to take additional exposure to a particular investment made by an alternative investment fund (AIF)—vehicles used by private equity and venture capital firms to invest in India.