Finshots Daily What SEBI’s new AIF rules mean
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Nov 13, 2025 The discussion dives into SEBI's new rules on Alternative Investment Funds (AIFs), revealing their appeal to high-stakes investors. The host unpacks SEBI's push for fairness amid concerns over unequal treatment. Key concepts like pro rata and pari passu are explained with relatable analogies. The complexities of staged capital calls and undrawn commitments are also highlighted. With new transparency requirements, the implications for existing and open-ended funds are explored, ensuring a clearer playing field for all investors.
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AIFs Serve Big, Private Bets
- AIFs cater to large investors seeking high-risk, high-reward bets outside public markets.
- Their flexibility let big checks negotiate special terms, creating unequal outcomes within the same fund.
Regulator Stepped In Over Unequal Treatment
- SEBI intervened because some investors in the same AIF got unequal rights and returns.
- That violated the pooled-fund premise where everyone's money should share the same risk and reward.
Undrawn Commitments Create Fairness Ambiguity
- AIFs call capital in stages so undrawn commitments create ambiguity about fairness rules.
- Whether 'commitment' means total or undrawn amount changes investor outcomes significantly.