SEBI proposes AIF rules requiring related party fee disclosures
SEBI is shaking up the rules for alternative investment funds (AIFs) to make things more transparent and protect investors from hidden fees or conflicts.
If these changes go through, AIFs will have to clearly disclose any fees paid to related parties and report investments involving those connections right in their offering documents.
SEBI is also asking for public feedback on these proposals until July 21.
SEBI proposes 75% AIF investor approval
Big decisions at AIFs would need approval from at least 75% of investors by value, making the process more democratic.
The term "related party" will now cover a wider range of connections (like fund managers' or sponsors' other businesses) to help spot potential conflicts early.
There are also tighter rules coming for angel funds and special situation funds, banning deals with their own related parties and requiring extra transparency about fees and investments.