Mumbai – On Monday, the Securities and Exchange Board of India (SEBI) announced important relaxations for Category II Alternative Investment Funds (AIFs). These funds will now be allowed to invest a greater portion of their capital in listed debt securities rated ‘A’ or lower. The move is intended to improve investment flexibility and increase liquidity within the AIF sector.
In another regulatory update, SEBI has removed the previous limitation on registered investment advisors (RIAs), now allowing them to charge advisory fees up to one year in advance. Prior to this change, RIAs could only collect fees for a maximum of three months upfront.
SEBI Forms High-Level Panel for Conflict of Interest Review
In a separate initiative, SEBI also announced the creation of a high-level committee (HLC) to examine its conflict-of-interest regulations, as well as its disclosure requirements related to properties, investments, liabilities, and other financial matters involving its members and officials.
“The HLC will consist of distinguished individuals with expertise in constitutional, statutory, and regulatory bodies, along with professionals from the government, private and public sectors, and academia. SEBI said it would announce the members of the committee in due course.
These changes are part of SEBI’s ongoing efforts to strengthen transparency, improve investor protection, and ensure better regulatory oversight within India’s financial markets.
