Sebi eases winding-up norms for AIFs, introduces 'inoperative fund' framework (opens original article in a new tab)

Sebi issues guidelines allowing AIFs to retain liquidation proceeds beyond their fund life under specific conditions, including litigation notices or investor approval, while introducing an 'Inoperative Fund' framework for wound-up funds.

• Sebi allows AIFs to retain liquidation proceeds beyond fund life under specific conditions
• AIFs must get 75% investor approval for retaining funds against liabilities
• Inoperative Funds status restricts new investments and certain compliance requirements
• Annual reporting on retained money and liabilities is mandated