Alternative Investment Funds (AIFs) are investment vehicles meant to channelize the capital of sophisticated investors to companies in need. With an approach to strike a balance between operational and investment flexibility for AIFs, while ensuring that investors are able to make informed decisions, this consultation paper seeks comments and views from the public and stakeholders on the following proposals –
- To standardize the process of obtaining investor consent as per requirements mandated under AIF Regulations, including, for carrying out conflicted transactions;
- To bringing consistency in threshold for unitholder approval prescribed under AIF Regulations and circulars issued thereunder; and,
- To rationalize the ambit of conflicted transactions which would require investor consent, in a manner that aligns with the underlying regulatory intent.
The proposals in the consultation paper are expected to reduce ambiguity in application of the regulations, and provide AIFs with a clear, predictable and implementable framework for obtaining investor consent and undertaking transactions involving potential conflicts of interest. The comments or suggestions should be submitted latest by July 21, 2026.
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