Alternative Investment Funds

AIF commitments rose nearly 3.5 per cent from March and 23.6 per cent year-on-year, while total investments crossed Rs 7 trillion for the first time

The regulator has proposed shifting dispute handling to market infrastructure institutions, reducing timelines and strengthening investor protection measures

Commitments raised, other parameters have grown faster than other AIF categories

Sebi has proposed stricter AIF rules, including 75% investor approval for related-party transactions and a shift from 'associate' to 'related party' norms

AIF managers are seeing investor allocations revive as geopolitical risks ease, while GIFT City continues to attract strong fund inflows and global investment interest

Markets regulator Sebi on Tuesday issued guidelines to permit Alternative Investment Funds (AIFs) to retain liquidation proceeds beyond their permissible fund life under specified circumstances. The regulator also introduced an 'Inoperative Fund' framework for wound-up funds with residual obligations. The move follows amendments to the Sebi (Alternative Investment Funds) Regulations on April 18 aimed at providing operational flexibility to AIFs during the winding-up process and surrender of registration. Under the new framework, AIFs or their schemes may retain liquidation proceeds beyond the liquidation or dissolution period if they have received litigation notices or regulatory demands, obtained consent from at least 75 per cent of investors by value for retaining funds against anticipated liabilities, or need to meet residual winding-up related operational expenses, Sebi said in its circular. The regulator said litigation-related communications could include notices from tax ...

The regulator may also consider reforms for agri-commodity derivatives, easier AIF approvals, and relaxed borrowing norms for mutual funds

Markets regulator Sebi on Monday proposed a new green-channel mechanism -- GARUDA-- for alternative investment funds (AIFs) to launch schemes to 10 working days of filing their placement memorandums from the current 30 days, in a bid to speed up the deployment of capital by them. GARUDA, or Green-Channel: AIF Rollout Upon Document Acknowledgement, aims to streamline the Processing of Placement Memorandums (PPMs) filed with Sebi and further ease fundraising by AIFs. Under the proposal, regular AIF schemes would be allowed to launch within 10 working days of filing the PPM with Sebi through a merchant banker, unless the regulator raises objections. At present, AIFs can launch schemes only after 30 days from filing, Sebi said in its consultation paper. For the first scheme of an AIF, launch would be permitted from the date of grant of registration or after 10 working days of filing the application, whichever is later. Sebi said the move would "further enable faster and efficient ...

Poornam Asset Management IFSC becomes first foreign family office to secure FIF registration under 2025 rules, marking a key step in Gift City's evolution as a global financial hub

Sebi eases AIF closure rules, allowing funds to retain liquidation proceeds under conditions as Rs 180 crore remains locked due to litigation, tax and operational issues

Domestic investors pumped Rs 1.14 lakh crore into AIFs in 18 months to September 2025, reflecting that the industry is building a locally-anchored capital base, a report by Crisil said. Domestic investors accounted for 55.3 per cent of category I and II AIF capital in September 2025, up from 50.3 per cent in March 2024, with an incremental inflow of Rs 1.14 lakh crore over the period intervening, the report added. "That indicates the industry is building a more self-sustaining, locally anchored capital base, reducing its reliance on foreign capital," according to the third edition of 'No Ifs About AIFs', a benchmark-led assessment of India's AIF ecosystem by Oister Global and Crisil Limited. Cumulative alternative investment fund (AIF) commitments across Categories I, II and III reached Rs 15.05 lakh crore as of September 2025, clocking a compound annual growth rate of 30.7 per cent between fiscal 2021 and the first half of fiscal 2026, it highlighted. On the outcome, the report sa

Fund houses rolling out SIF are facing distribution challenges as stringent certification norms sharply limit eligible distributors, prompting the industry to seek regulatory relaxations

Likely amendments may ease compliance, enable greater foreign inflows

Sebi proposes easing exit norms for AIFs, allowing limited retention of liquidation proceeds and introducing a lighter compliance regime for inoperative funds

Data from Sebi showed that investments by AIFs climbed 27 per cent over the year to Rs 6.45 trillion as of December 2025, while total funds raised since inception stood at Rs 6.78 trillion

India's AIF industry urges tax parity for private credit funds and clearer rules for Category III AIFs in the upcoming Union Budget to ensure fair treatment and reduce disputes

Domestic fund raising is growing faster amid increased local interest

PFRDA has overhauled NPS investment rules, allowing wider exposure to AIFs, REITs, InvITs, commodities, IPOs and a broader equity universe to boost returns and deepen diversification

India's march toward a $6.6-trillion economy is being powered by booming AIF activity, with commitments touching ₹13.49 lakh crore and domestic investors emerging as major contributors

ASK Property Fund and India Sotheby's International Realty launch a Rs 500 crore equity platform with Amavi by Clarks to invest in branded luxury second homes across key destinations