India, May 10 -- The Securities and Exchange Board of India (SEBI) has reportedly proposed allowing more flexibility for investors to co-invest with the alternative investment funds (AIFs).

A PTI report said that the regulatory body suggested scrapping of prohibition on investment managers of AIFs to provide advisory services in listed securities.

In simple terms, co-investment primarily allows the fund to focus beyond its own limitations of ticket size and portfolio management. Funds tend to offer co-investments in cases, where the investment is too large to fit in the fund or for maintaining control of an investment as well as building relationships with their LPs, who will be counted upon for future fundraising.

Further, AIF is a pr...