The Viability Of Opening Private Equity To The Public: A Study Of The Indian Capital Markets

Bhavya Belwal, Jindal Global Law School

ABSTRACT

Private Equity since long has remained a closed door, behind which mega institutional investors and qualified fund groups have operated to generate wealth and returns. This has largely been due to the fact that the field of private equity involves a lot of technical know-how, and it has traditionally accepted investments in large tokens. All this has led to the exclusion of the public from these lucrative investment avenues. However, this research paper argues that despite the hurdles and the risks awaiting the public, retail investors in the private equity realm, there are great benefits that await too, not just for in terms of personal financial gains but also collectively for the markets in terms of enhanced liquidity, transparency, and governance standards. This research paper argues that special vehicles could be designated to merge the public realm and the private equity realm. To argue this, the paper draws comparative analysis with jurisdictions that have already tried similar experiments in their capital market regimes.

Keywords: Private equity, public access, Tender Funds, Business formation Companies, and PE-VC.