Sebi has a comprehensive framework in the form of Alternative Investment Funds (AIFs) Regulations to bring PEs and VCs, under its ambit of inspection and investigation, and said all these funds have to register with the regulator now. At present, PE and VC funds have the option not to register with Sebi. However, considerable confusion existed about the rules of AIFs, since Sebi did not specifically say if these rules applied only to India domiciled funds or also those based outside India.
Exfinity Fund, a tech focused VC firm formed by IT veterans like T.V. Mohandas Pai, Girish Paranjpe and V. Balakrishna, has invested $1 Mn in Silicon Valley based smart sensing technology startup, LensBricks Inc. The investment was made along with two other investors - North Bridge Ventures and Lux Capital.