New Delhi, Dec. 8 -- The Securities and Exchange Board of India (Sebi) has laid out a formal framework to allow existing alternative investment funds (AIFs) to be converted into accredited investor-only funds (AI-only funds) or large value funds (LVFs).

In a circular released on Monday, the markets regulator formalized the process for AIFs wishing to launch new AI-only funds or LVFs, or convert existing schemes into these categories. All such schemes must explicitly include the phrase 'AI only fund' or 'LVF' in their name.

The circular comes into effect immediately and compliance is mandatory for all fresh launches and conversions of existing schemes. Existing AIF schemes may migrate to an AI-only or LVF structure provided they obtain c...