SEBI proposes AIF rule overhaul for transparency and fairness
SEBI is planning to shake up the rules for alternative investment funds (AIFs) to make things more transparent and fair.
The big idea? Standardize how investor approvals work, cut down on confusing consent rules, and keep a closer eye on deals that could lead to conflicts of interest.
These changes were proposed on Tuesday.
SEBI's AIF proposal needs 75% approval
If these proposals go through, all major decisions for AIFs would need approval from investors holding at least 75% of the fund's value.
No more juggling between different consent thresholds.
SEBI also wants to expand what counts as a "conflict of interest" and fix inconsistent practices around voting and approvals, so everyone knows where they stand.
The goal is less confusion, more trust, and smoother operations for everyone involved.