SEBI proposes investor silence as consent to speed AIF decisions
Business
SEBI is shaking things up for Alternative Investment Funds (AIFs) with a new proposal:
If investors don't respond to fund manager requests, their silence will count as approval.
The idea is to speed up decision-making, especially when there are lots of investors and getting everyone's reply is tough.
SEBI lists 3 AIF voting options
There are three voting options on the table: silence equals consent, only counting those who actually vote, or going by total investor holdings.
AIFs will have to pick one method for all investors.
SEBI also wants clearer rules about voting timelines and reminders so people know what's happening.
Plus, they're updating some terms and standardizing approval thresholds to keep things fair and transparent.