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    Question

    SEBI has allowed co-investment to be offered as a

    dedicated scheme within the main AIF structure. What is the investment limit by an investor in a single company under this scheme? 
    A Equal to investment in main AIF Correct Answer Incorrect Answer
    B Two times the investment in main AIF Correct Answer Incorrect Answer
    C Three times the investment in main AIF Correct Answer Incorrect Answer
    D 50% of the investment in main AIF Correct Answer Incorrect Answer
    E 25% of the investment in main AIF Correct Answer Incorrect Answer

    Solution

    A co-investment allows an accredited investor to invest directly into a specific company alongside the main AIF, rather than investing only through the AIF's pooled money. This provides investors with a chance to increase their exposure to certain companies they believe in, outside of the pooled AIF structure. • The AIF can have a Co-Investment Vehicle (CIV) that allows co-investments to be structured as a separate, independent scheme under the umbrella of an AIF. • Co-investment opportunities are restricted to accredited investors. • Co-investments are typically made in the unlisted securities of the investee company.  • This framework applies to Category I and Category II AIFs. • An investor's co-investment in a single company cannot exceed three times their contribution in the main AIF scheme (with some exceptions).

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