Sunday, August 31, 2025
Home » Banking & Finance » RBI proposes relaxing rules for investments in AIFs

RBI proposes relaxing rules for investments in AIFs

May 19, 2025
Banking & Finance
0

Hey, like this? Why not share it with a buddy?

The Reserve Bank of India (RBI) is considering easing investment norms for regulated entities (REs) in alternative investment funds (AIFs), following earlier restrictions aimed at financial discipline. A draft proposal suggests capping a single RE’s contribution to an AIF scheme at 10% of its corpus, with a 15% ceiling for all RE investments in a scheme. The Reserve Bank of India has proposed relaxing norms for investments in alternate investment firms by regulated entities (REs) in the aftermath of its earlier tightening bringing in financial discipline, it said in a release on Monday.

In December 2023, the RBI had barred REs, including banks and non-banking finance companies (NBFCs) from investing in alternate investment funds (AIFs) that have investments in existing and recent borrowers. In a draft proposal released, it said a single RE’s contribution to any alternate investment fund (AIF) scheme shall be capped at 10% of its corpus while a ceiling of 15% would apply for investments by all RE’s in an AIF scheme. It also added that RBI may exempt certain AIFs in consultation with the Government, which have been set up for strategic purposes.

Source : https://economictimes.indiatimes.com/news/economy/policy/rbi-proposes-relaxing-rules-for-investments-in-aifs/articleshow/121269381.cms?from=mdr

Related Posts

RECENT POST

Archives

Categories

Reader / Viewer discretion and disclaimer :
The information provided on SME e-News (www.smeenews.com) website is intended for general informational purposes only. While we strive to provide accurate and up-to-date information, we cannot guarantee the accuracy, completeness, or reliability of the content. The views and opinions expressed in the articles and posts on this website are those of the authors and do not necessarily reflect the official policy or position of SME-e-News website. Readers are advised to independently verify any information found on this website before making decisions based on it. We do not endorse, represent, or warrant the accuracy or reliability of any third-party content linked on this site. Furthermore, SME e-News (www.smeenews.com) website shall not be held liable for any errors, omissions, or delays in the information provided, nor for any losses, injuries, or damages arising from its display or use. Please note that the content on SME e-News (www.smeenews.com) website may be subject to change without notice.