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.
Making its mark in India by its first investment in Dovetail way back in 1994, it has been one of the mostactive VCs in the past 7 years after merging with Mitra's earlier fund Erasmic Venture in 2008. The firm went on to raise about $60 Million that year.