Venture capitalists have found new ways to side step stringent Sebi laws. If market sources are to be believed, VC funds are registering themselves as PMS (portfolio management service) providers — a step that will enable these fund-pools to invest across asset classes. A PMS fund manager said: "It is relatively easier to get approvals for PMS services than VC funds. With a PMS registration, these funds will be able to invest in listed and unlisted companies without really having to disclose much about their investments." Violating relevant Sebi PMS rules, most of these funds are targeting live real estate projects, which are facing tough times as a result of lower sales and higher borrowing costs.   more »

The current downturn in the equity markets has made exits difficult for private equity (PE) players. While earlier, exits through IPO route were common due to a buoyant market, the current slowdown will make such exits a thing of the past. "The environment for exits is terrible," says ChrysCapital senior managing director Ashish Dhawan. Most private equity firms invest in mid-cap companies, where liquidity has dried up, he explains. Numbers, too, point to a slowdown on exits through IPOs. Data from Venture Intelligence for the first half of 2008 suggest that PE players made six exits through IPOs. Last year, 16 exits took place via IPOs while the number for 2006 was 19.   more »