Alternative Investment Funds (AIF) industry in India has gained impetus with liberalization of foreign investments in AIFs, recent amendment to Indo-Mauritius Treaty and pro-business environment in the country. These pooling vehicles (i.e. AIFs) have the ability to provide for long term, and stable risk capital, thus are considered to be an effective alternative to the traditional methods of funding. AIFs are regulated by the capital market regulator vide SEBI (Alternative Investment Funds) Regulations, 2012 (AIF Regulations). Prior to AIF Regulations, the pooling of funds was regulated by SEBI vide SEBI (Portfolio Managers) Regulations, 1993 (PMS Regulations) and erstwhile SEBI (Venture Capital) Regulations, 1996. However, with coming up of AIF Regulations, pooling under the PMS Regulations have gradually reduced.