New Delhi, Aug. 11 -- India's capital market regulator has proposed sweeping reforms for large value funds (LVFs), including reducing the minimum investment threshold from Rs.70 crore to Rs.25 crore and major compliance relaxations.

These changes could dramatically widen access for sophisticated domestic investors.Mint explains what is changing, why it matters, and the likely impact on India's alternative investment industry.

Large value funds are specific schemes of alternative investment funds (AIF) where every investor (excluding the manager, sponsor, and certain insiders) is an accredited investor and commits a large minimum amount.

These funds already enjoy some relaxations, such as faster scheme launches, higher single-investee l...