The Securities and Exchange Board of India (SEBI) has given seven alternative investment funds permission to operate in the country under a new regulation, though Mumbai-based Forefront Alternative Investment Trust was the only fund that passed muster to be given a Category III licence.
All funds trading with a view to make short-term returns are lumped by the SEBI under the Category III classification.
Three funds gained approval under Category II. They are Excedo Realty Fund I, Sabre Partners Trust and KKR India Alternative Credit Opportunities Fund. These funds can invest anywhere in any combination, but are prohibited