A key concern underlying these moves has been the potential use of AIF structures for evergreening of loans and masking true credit risk. Simultaneously, SEBI has also acted, most notably through its circular dated November 23, 2022, which curtailed the use of the priority distribution model, and a circular dated December 13, 2024, which permitted certain investors to subscribe to junior/ subordinate classes of units.
Cracking the code: RBI’s new playbook for investments by Regulated Entities in Alternative Investment Funds
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