SEBI's new AIF rules decoded: 10 major changes investors and fund managers should know (opens original article in a new tab)

SEBI updated AIF regulations to allow funds to retain proceeds beyond their life for unresolved liabilities, introducing an 'Inoperative Fund' category to manage ongoing issues during winding-up.

• SEBI allows AIFs to retain liquidation proceeds beyond their fund life for unresolved liabilities
• New 'Inoperative Fund' category manages ongoing legal, tax, and regulatory issues during winding-up
• AIFs can use retained funds for residual operational expenses with a three-year cap
• Inoperative Funds face restrictions on new investments and management fees but get compliance relief
• Investor approval is required for retaining funds against anticipated liabilities