LatestStartup And Fundraising 5 October 2026
SEBI Flags Gap in Draft Foreign Investment Rules for AIFs
SEBI’s 2024 consultation paper warns that the draft foreign investment rules overlook foreign‑funded alternative investment funds (AIFs) that have Indian‑owned sponsors or managers, creating a regulatory blind spot that could expose investors to unchecked risks and hinder capital flow.
Key points
- SEBI highlighted in its 2024 consultation paper that the draft foreign investment rules do not address foreign‑funded AIFs with Indian‑owned sponsors or managers.
- This omission creates a regulatory gap, potentially allowing unchecked capital inflows and posing risks to domestic investors.
- The regulator urges policymakers to close the gap to ensure transparency and protect market stability.
Read the full analysis here.
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