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SEBI Whole Time Member Ananth Narayan G said that SEBI is open to allow new categories of investors to subscribe to AIFs.
Narayan spoke at the industry’s first conference on alternates – Cafemutual’s CafeAlt Conference 2024.
Narayan said, “With the checks and balances that the code of conduct for AIFs is expected to provide, and subject to some guardrails around differentiating across different class of units, we are open to allowing more categories of investors (such as multilateral and government agencies) to subscribe to junior tranches of funds.”
Further, Narayan directed the AIFs players to form an association for wider representation and directed them to practice self regulation. He said, “The AIF industry should have associations with wider representation for creating better dialogue among the members, practice some level of self-regulation and for better communication with regulators and other stakeholders.”
The WTM also urged the AIF and PMS industry to streamline the operations, develop resilience to the emerging risks like cyber risks and participate more actively in investor education and awareness activities.