SEBI's new AIF rules decoded: 10 major changes investors and fund managers should know

SEBI has amended the AIF Regulations to give Alternative Investment Funds greater flexibility during winding-up, allowing them to retain a portion of liquidation proceeds beyond their permissible fund life to cover potential tax, legal or regulatory liabilities. Investor approval of at least 75% by value is required for retention related to anticipated liabilities, and funds with pending issues can apply for a new 'Inoperative Fund' status with relaxed compliance requirements. Inoperative funds cannot make fresh investments or charge management fees, and the framework is based on amendments dated April 18.