THE FRAMEWORK

Private equity (PE) has emerged as a significant source of capital for Indian businesses in recent years, and the legal and regulatory framework governing PE in India has evolved to accommodate this trend. The legal framework governing private equity in India is governed by various regulations and guidelines issued by the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry. Some of the key aspects of private equity law and practice in India include:

• Entry routes: PE investors can invest in India through various entry routes, including as foreign portfolio investors (FPIs), foreign venture capital investors (FVCIs), and alternative investment funds (AIFs).

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• Regulatory compliance: PE investors are required to comply with various regulations and guidelines issued by SEBI, RBI, and DPIIT. Compliance requirements include obtaining necessary approvals, reporting requirements, and complying with sectoral caps and other restrictions.

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• Structuring: Structuring private equity investment in India can be complex, and it is important for investors to work with experienced legal and financial advisors to ensure that their investment is structured in compliance with Indian laws and regulations.

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• Due diligence: PE investors typically conduct extensive due diligence on target companies before investing. Due diligence covers legal, financial, and commercial aspects of the target company, and is aimed at identifying potential risks and opportunities associated with the investment.

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• Exit strategies: PE investors typically have a range of exit options in India, including initial public offerings (IPOs), strategic sales, and secondary sales to other investors.

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SANGHAVI & PARTNERS ADVANTAGE

Sanghavi & Partners is a leading Indian law firm that provides legal services to clients in various areas of law, including private equity in India. The firm has a team of experienced lawyers who are well-versed in the legal and regulatory framework governing private equity in India and provide practical and strategic advice to clients to help them achieve their business objectives. The firm offers a range of legal services related to private equity in India, including:

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• Investment structuring: Sanghavi & Partners assists PE investors in structuring their investment in compliance with Indian laws and regulations. The firm advises clients on entry routes, compliance requirements, and other legal and regulatory considerations.

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• Regulatory compliance: The firm advises clients on regulatory compliance requirements for private equity investments in India, including obtaining necessary approvals, reporting requirements, and compliance with sectoral caps and other restrictions.

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• Due diligence: Sanghavi & Partners conducts due diligence on target companies to assist PE investors in making informed investment decisions. The firm also assists target companies in preparing for due diligence and addressing any issues that may arise during the due diligence process.

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• Fund formation: The firm advises clients on the formation and registration of alternative investment funds (AIFs) in India. The firm assists clients in structuring their funds and preparing offering documents in compliance with Indian laws and regulations.

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• Exit strategies: The firm advises clients on various exit options available in India, including strategic sales, and secondary sales. The firm also assists clients in preparing for exits and addressing any legal and regulatory issues that may arise during the exit process.