Chiratae News

Exclusive: SEBI picks big PE/VC names for Alternative Investment Advisory Committee

VC Circle

May 7, 2015

By Raghuvir Badrinath

EBI floated AIF regulations three years ago.

The capital markets regulator Securities and Exchange Board of India (SEBI) has constituted a 17-member team, including the who’s who of the Indian private equity and venture capital ecosystem, to be part of the Alternative Investment Policy Advisory Committee. This committee, whose first meeting is scheduled for June 5, will deliberate and address issues to develop alternative investments besides the startup ecosystem in India.

According to a note from SEBI reviewed by VCCircle, the committee will be chaired by Infosys co-founder NR Narayana Murthy. Murthy, who stepped down from the board of the IT giant last year, had previously turned a private investor through his family office Catamaran.

The prominent names of the PE industry who form part of the committee include Sanjay Nayar (member and CEO of private equity major KKR India), Devinjit Singh (managing director of Carlyle Group, handling large growth capital and buyout opportunities in India), Raja Kumar (founder and CEO of home-grown PE firm Ascent Capital) and Manish Chokhani (senior advisor and chairman of TPG Growth India).

Then there are heavyweights of financial services industry: Ajay Piramal (chairman of Piramal Group, which runs PE and infrastructure investments business) and Sunil Godhwani (chairman and managing director of Religare Enterprises).

The committee also comprises active angel and venture capital investors Saurabh Srivastava (co-founder Indian Angel Network), Sudhir Sethi (founder, chairman and managing director of IDG Ventures India) and Akshay Mansukhani (partner of Malabar Investments and member Mumbai Angels). Others from the early stage investment and startup industry include Mani Iyer (director of Incube Ventures) and Abid Hassan (COO MobMe).

Another member is Gautam Mehra, partner & leader for financial services, tax & asset management at PwC.

The committee will also comprise one representative each from the Ministry of Finance and RBI, besides two nominees from SEBI.

It marks another initiative by SEBI to not just acknowledge but also look at regulation of PE/VC funds and address startup funding issues in the country.

Three years ago, SEBI came with new AIF regulations to replace existing VCF norms and later expanded its scope by bringing angel funds under it. It also created the framework for REITs last year and floated norms for startup listing platform.

However, a lot remains to be done to fine-tune the existing regulations especially to channel domestic capital in the PE/VC space. The committee is expected to facilitate the move.