Pages

Wednesday, November 23, 2022

PE houses, VCs can no longer stretch their fund's life to avoid fire sale :-ET Nov 23,2022 Used for educational purposes only.

 

Synopsis

The Indian capital markets regulator has made it unambiguously clear that funds have to close and liquidate within the specified period even if a predominant number of investors who have contributed to a fund pool give their consent to extend the tenure of the fund.


Private equity houses, venture capitalists, real estate and debt fund managers can no longer indefinitely stretch the lives of their funds to avoid a fire sale of assets and securities.

The Indian capital markets regulator has made it unambiguously clear that funds have to close and liquidate within the specified period even if a predominant number of investors who have contributed to a fund pool give their consent to extend the tenure of the fund.



No comments:

Post a Comment