SEBI eases shutdown rules for AIFs to retain leftover funds
Business
SEBI has rolled out new rules to help Alternative Investment Funds (AIFs) close down more smoothly.
Now, AIFs can hang on to leftover money after shutting down, using it to settle taxes, lawsuits, or other final bills.
No more rushing to empty their bank accounts just to finish paperwork.
SEBI introduces 'Inoperative fund' category
There's a new "Inoperative Fund" category for funds that are done investing but still have loose ends.
These funds get a break from some compliance hassles but can't launch new schemes or charge fees.
SEBI pointed out that 14 AIFs had kept ₹180 crore after closing just to deal with unresolved issues.
Experts say these changes bring much-needed clarity and relief for fund managers, though India's approach is still stricter than places like Singapore.