SEBI Relaxes Investment Norms for AIFs, Forms High-Level Panel on Disclosures

Mumbai – The Securities and Exchange Board of India (SEBI) on Monday introduced key relaxations for Category II Alternative Investment Funds (AIFs), allowing them to invest a larger portion of their assets in listed debt securities rated ‘A’ or below. The decision aims to enhance investment flexibility and boost liquidity in the AIF sector.

In another regulatory change, SEBI reversed its earlier restriction on registered investment advisors (RIAs), now permitting them to collect up to one year’s advisory fee in advance. Previously, RIAs were limited to collecting only three months’ worth of fees upfront.

High-Level Committee to Oversee Conflict of Interest Rules

In a separate move, SEBI announced the formation of a high-level committee (HLC) to conduct a thorough review of its conflict-of-interest regulations, along with disclosure norms related to properties, investments, liabilities, and other financial matters concerning its members and officials.

“The HLC shall comprise eminent persons and experts with relevant experience in constitutional, statutory, and regulatory bodies, as well as professionals from government, public and private sectors, and academia. The names of the committee members will be announced in due course,” SEBI stated.

These steps are part of SEBI’s ongoing efforts to enhance transparency, strengthen investor protection, and ensure effective regulatory oversight in India’s financial markets.