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₹1 lakh cr of AIF investments structured to circumvent financial regulations: Sebi’s Narayan

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 ₹1 lakh cr of AIF investments structured to circumvent financial regulations: Sebi’s Narayan

A significant portion, around 20%, of investments made by Alternative Investment Funds (AIFs) in India has been structured to bypass existing financial regulations, according to Ananth Narayan G, a whole-time member of the Securities and Exchange Board of India (SEBI). The industry has been advocating for lighter regulations, but Narayan stressed that it is the structuring of the funds to circumvent laws that is a hindrance. He also mentioned the need for the industry to adopt the concept of accredited investors to provide more flexibility to SEBI. Additionally, Narayan expressed concerns over potential conflicts of interest in valuations and suggested independent entities to determine the value of unlisted securities.

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