New guidelines for venture capital funds (VCFs) and alternative investment funds (AIFs) investing abroad were released by the Securities and Exchange Board of India (SEBI). In the most current guidelines, SEBI eliminated the requirement that the investee entity must have a connection to India. AIFs are allowed to invest in the securities of firms with foreign incorporation. Additionally, VCs may invest in offshore venture capital firms under specific circumstances. Prior to this change, Indian funds were limited to investing 25% of their capital in international businesses that had a presence in India, like a branch office. However, the 25% ceiling is still in force, and SEBI was only evaluating the meaning of “India connection” last year.