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Abstract

Private equity investments have been growing rapidly in India. The growth may be attributed to the fact that companies which are funded by private equity funds often perform better compared to those which are not. Therefore, investments of such kind have gained importance, making it imperative to understand the legal framework that governs private equity fund and investments. Recently, the regulatory framework governing private equity funds and investments in India has seen notable changes. These changes have mostly found place in the Companies Act, 2013, securities laws enacted by the Securities and Exchange Board of India, the Income-Tax Act, 1961, and the Foreign Exchange Management Act, 1999. This article seeks to lay down the broad structure of the regulatory framework by tracing the legal developments in the legislations which govern private equity funds and their investments.

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