SEBI Guidelines for AIFs – Explained Simply

Introduction
AIFs in India are credible because they operate under SEBI’s regulatory framework. Understanding these guidelines helps investors gain confidence.

Key SEBI Regulations

• Registration: All AIFs must be registered with SEBI.
• Minimum Investment: ₹1 crore (ensures only informed investors).
• Categories: I, II, III (different investment mandates).
• Transparency: Regular reporting, audited financials.
• Restrictions: Leverage, related-party transactions regulated.

Why It Matters

• Protects investors from misuse of funds.
• Ensures fund managers operate within strict boundaries.
• Enhances accountability and governance.

Key Takeaway

• SEBI framework makes AIFs safer and more transparent.
• Investors should verify SEBI registration before investing.

Disclaimer
This blog is for educational purposes only and does not constitute investment advice. Past performance may or may not be sustained in the future. Investments in AIFs and PMS are subject to market risks. Please consult your SEBI-registered investment advisor before investing