REGULATORY · COMPETITIVE · INDIA
SEBI eases AIF winding-up norms
Change
SEBI allows AIFs to retain liquidation proceeds beyond fund life under specified conditions.
Why it matters
SEBI permits AIFs to retain liquidation proceeds past the prescribed fund life when justified by pending tax or litigation notices, 75% investor-by-value consent, or substantiated operational expenses. Funds holding such residual proceeds can be designated 'inoperative' and operate under lighter compliance, including exemptions from periodic filings and benchmarking. Operational-expense retention is capped at three years, so immediate full distribution and registration surrender are no longer required in
Implications · Who is affected · What to watch
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