The LVFs are a type of Alternative Investment Fund (AIF) designed for sophisticated investors. A major change proposed is to lower the minimum investment threshold from ₹70 crore to ₹25 crore, which is expected to attract more domestic institutional investors and increase fund-raising for AIFs. It also recommends exempting LVFs from several requirements, including the need to follow a standard Private Placement Memorandum (PPM) template, the mandatory annual audit of PPM terms, and the NISM certification for key investment staff. It also suggests removing the cap on the maximum number of investors in an LVF scheme and providing a transition option for existing AIFs to convert into LVFs if they meet the new criteria. The feedback/ comments from stakeholders are invited.