How are private equity firms regulated and what are the key legal and regulatory considerations for investors?

In India, private equity firms are regulated by the Securities and Exchange Board of India (SEBI), which is the primary regulatory body for the securities market. Private equity firms must register with SEBI as Alternative Investment Funds (AIFs) and comply with various regulations, including disclosure requirements, reporting requirements, and investment restrictions.

Additionally, private equity firms and investors need to comply with other legal and regulatory considerations, such as tax laws, foreign exchange regulations, and antimoney laundering laws. It is important for investors to work with qualified legal and financial advisors to ensure compliance with these regulations and mitigate any associated risks.