Former Sebi chairman U K Sinha on Tuesday said alternative investment funds can play a crucial role in helping the economy meet the challenge of job creation.

       The career bureaucrat who served as the Sebi chairman for six years said there are other challenges confronting the economy as well, but singled out jobs as a critical function where AIFs can be of help.

       "Going by many of the macro data that we have, there are problems in our economy today, for example on employment generation," Sinha said while addressing a CII event on AIFs here.

       "The AIF industry does not exist for itself. It has to serve a larger purpose," said Sinha, who is widely credited to have played an important part in the AIF industry by introducing regulations on the aspect during his tenure as the Sebi chief.

       He said the AIF industry, which has invested around Rs 5 trillion as of now, reminds him of the mutual fund industry of 2012.

       The AMCs had Rs 6 trillion of assets under management and were also facing some or the other challenges, Sinha said, noting that the sector's AUM has risen 10x to over Rs 60 trillion at present.

       More From This Section

       Rupee weakens to new low of 84.93 as trade deficit hits record high

       About 4 out of 10 individuals in rural, semi-urban India prefer UPI: Report

       Q2 growth a temporary blip, economy to see better growth: FM Sitharaman

       Premium

       India's semiconductor ambitions take wing but water, talent issues remain

       Premium

       Milk industry sounds the alarm as India's production growth sees steep fall

       The AIF industry must set out a blueprint for its growth in the time ahead, Sinha said, asserting that it must aspire for a 5x jump in investments in the next five years.

       Noting that the government is very serious about supporting the sector, the former Sebi chief said AIFs can be a very good vehicle for promoting entrepreneurship as well.

       (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

       Also Read

       A fifth of AIF investments questionable in terms of intent: Sebi official

       Market regulator Sebi weighs easing norms for Alternative Investment Funds

       Kotak AMC set to enter AIF space; to launch Rs 2,000 cr private credit fund

       Alternative investment funds gain currency as fundraise tops Rs 5 trillion

       Market regulator Sebi notifies pro-rata distribution norms for AIFs