Downstream Investment Must Exclude Investments in Equity Shares of Debtor Co. of REs but Include Hybrid Instruments | RBI Clarifies
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Circular No. RBI/2023-24/140 DOR.STR.REC.85/21.04.048/2023-24; Dated: 27.03.2024
Earlier, the RBI issued a circular on ‘Investments in Alternative Investment Funds’ by regulated entities (REs). The RBI has now modified the circular. This is done to ensure uniformity in implementation among REs and to address concerns flagged in various representations received from stakeholders.
RBI has clarified that downstream investments must exclude investments in equity shares of the debtor company of the RE but must include all other investments, including investments in hybrid instruments.
Click Here To Read The Circular
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