SEBI Rolls Out New Co-Investment Framework: A Big Win for India’s Private Market
India’s private capital landscape just received a significant boost.
In a major regulatory move, the Securities and Exchange Board of India (SEBI) has unveiled the Co-Investment Vehicle (CIV) framework under the Alternative Investment Funds (AIF) Regulations.
This initiative aims to streamline co-investment processes, making it easier and more transparent for Category I and II AIFs and their investors to co-invest in unlisted companies.
What Exactly Is a CIV?
A Co-Investment Vehicle is a sub-scheme within an AIF that allows accredited investors to invest directly in the same unlisted company that the fund is investing in—under the same terms and exit timeline.
Key highlights:
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No need for a separate PMS license
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Aligned terms for fund and co-investors
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Simplified compliance and a cleaner cap table for investee companies
Who Gains the Most?
✔️ Fund Managers
Enable seamless co-investments under the same AIF umbrella—no extra licenses or complex structures needed.
✔️ Accredited Investors
Faster onboarding, increased legal clarity, and access to curated private deals alongside top-tier funds.
✔️ Portfolio Companies
Cleaner ownership structures and fewer fragmented shareholders—leading to smoother governance and operations.
Why This Matters for India’s Investment Ecosystem
SEBI’s CIV framework makes co-investing more accessible, transparent, and compliant. It encourages more domestic capital to flow into early and growth-stage companies, while ensuring better oversight and protection for all parties involved.
This move is expected to:
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Improve fund governance
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Attract institutional and HNI participation
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Support long-term capital formation in India’s private markets
Is Your AIF Aligned with SEBI’s New CIV Framework?
Whether you're a fund manager, investor, or a startup working with AIFs, now’s the time to revisit your structure. This regulatory shift opens up new co-investment opportunities with minimal friction.
📞 Schedule a free consultation to explore how your AIF can benefit from SEBI’s new CIV rules: +91 93113 47006