As foreign jurisdictions adopt flexible CI frameworks, India must also reform its approach to overcome its competitive disadvantage. Thus, timely corrections will be key to unlocking the full potential of the Indian CI ecosystem.

SEBI’s approval of the CIV scheme as a model for co-investing in AIFs is a significant step towards modernizing the private capital market of India and aligning it with global standards. Streamlining co-investment processes, it provides much-needed flexibility and enhances the ease of doing business.

The SEBI-recommended CIV framework is a positive measure towards simplifying the co-investment regime by eradicating duplicative compliance requirements and allowing quicker execution. Nevertheless, its limited scope, restricting participation to existing AIF investors and accredited investors, may counteract the universal objective of democratizing access to private equity opportunities.

SIFs may bring advanced investment techniques to India's expanding HNI base and establish a model for emerging markets. However, neglecting world lessons or discounting major threats may repeat the mistakes of the past.

The new asset class tries to identify a new segment of investors, making the securities market more accommodative.

The consultation paper is a step in the right direction as to the establishment of APMI and digital onboarding of clients.

SEBI’s constant surveillance on the working of investment advisors is yet to be realised.