Sebi moves to standardise consent rules for AIFs

Sebi has released a discussion paper proposing to replace the existing mix of two-thirds and 75 percent investor approval thresholds in AIF regulations with a single uniform threshold of 75 percent consent by value of unit holders wherever investor approval is mandated. The regulator noted that varying thresholds and lack of guidance on methodology for obtaining consent have led to interpretational uncertainty and inconsistent treatment of conflict-prone transactions. The proposal aims to standardise solicitation practices, voting methodologies, and treatment of non-responses across the AIF industry.