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How is private equity regulated and what are the ethical considerations of private equity investing?

Curious about private equity

How is private equity regulated and what are the ethical considerations of private equity investing?

In India, private equity (PE) is regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (Alternative Investment Funds) Regulations, 2012. The regulations prescribe the eligibility criteria, investment restrictions, and disclosure requirements for private equity funds. The funds are required to comply with these regulations to ensure investor protection and market integrity.

In addition to regulatory compliance, private equity firms are expected to uphold high ethical standards in their investing activities. This includes ensuring transparency in deal sourcing, conducting thorough due diligence, respecting the interests of all stakeholders, and adhering to legal and regulatory requirements. Private equity firms also have a responsibility to manage risks and maximize returns for their investors, while contributing to the growth of the companies in which they invest.

It is important for investors to do their due diligence before investing in a private equity fund and to ensure that the fund and its managers have a track record of ethical behavior and regulatory compliance.

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