Gaja Capital has received approval from the Securities and Exchange Board of India (SEBI) for a new alternative investment fund. The regulator approved Gaja Capital India Fund V as a Category II AIF, according to a report by CNBC-TV18.

The fund will be managed by Gaja Alternative Asset Management and will have a ten-year tenure, a horizon typical of private equity vehicles, which generally hold investments for several years before exiting.

Category II AIFs are a fund category regulated by SEBI under India's alternative investment framework, which governs privately pooled investment vehicles that do not fall under traditional mutual fund or hedge fund regulations. Under SEBI's classification, Category II AIFs include private equity funds, debt funds, and funds for distressed assets, and they are not permitted to borrow except to meet day-to-day operational needs. Gaja Capital is a private equity firm focused on investments in Indian companies, and the numbering of the new vehicle indicates it follows earlier funds in the firm's India-focused series.

This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.

Source: CNBC-TV18