CCI Approves Acquisition of Shares Under the Large Value Fund (LVF) Scheme

• 03 Apr 2024

Source: PIB

Recently, the Competition Commission of India (CCI) has approved the acquisition of shares of MG Motor India Private Limited by IndoEdge India Fund under the Large Value Fund (LVF) Scheme.

• Large Value Fund (LVF) Scheme: It is an Alternative Investment Fund (AIF) wherein every investor is an accredited investor and invests a minimum amount of Rs 70 crore.
• Alternative Investment Fund(AIF): An AIF is a privately pooled or collective investment fund incorporated in India for investment purposes.
• SEBI categorizes AIFs into 3 types:
  • Category-1 AIFs:
    • Invest in startups, Small and Medium-sized Enterprises (SMEs), and socially beneficial sectors like infrastructure.
    • Includes Infrastructure Funds, Venture Capital Funds, Angel Funds, and Social Venture Funds.
  • Category-2 AIFs:
    • Invest in equities and debt securities, excluding Category 1 or 3.
    • Includes Fund of Funds, Debt Funds, and Private Equity Funds.
  • Category-3 AIFs:
    • Aim for short-term investment returns, utilizing complex trading strategies.
    • Includes Hedge Funds and Private Investment in Public Equity Funds.

Read More- RBI Strengthens Norms for Lenders in AIFs, Competition Commission of India (CCI)