Budget 2018: Private investors seek pass-through of losses at fund level
As per existing regulations, if there are losses in a fund at the end of its life, the same cannot be passed onto its investors BUDGET NEWS : At a time while Finance Minister Arun Jaitley and his crew would be getting set for Union finances 2018-19, the non-public fairness industry is seeking a skip-via of losses on the fund level for category 1 and category 2 opportunity investment funds (AIFs). in step with the present guidelines, if there are losses in a fund on the cease of its life, the identical cannot be surpassed onto its investors. ‘‘this is a massive difficulty with VC or infra budget. Over a fund lifestyles of 8-to-nine years, a fund may additionally emerge as with one or two loss-making companies,” says Gopal Srinivasan, president, Indian non-public equity & mission Capital association. The policies say that earnings may be surpassed onto investors, but losses must be kept on the fund level. curiously, Sebi’s authentic task capital rules of 1...