India’s venture capital and private equity firms have requested the Securities Exchange Board of India (Sebi) to revise regulations requiring co-investors to exit alongside funds. Co-investors, who seek additional exposure in investments, have faced restrictions since Sebi’s 2022 rules aimed at ensuring uniform exit terms for all investors. The surge in VC/PE exits amid IPOs has intensified concerns, as co-investors often prefer to remain invested longer. Industry experts argue that the current rules hinder co-investments and do not consider the varying investment horizons of sophisticated investors. An alternative approach, such as issuing co-investment units within an AIF, has also been discussed.