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SEBI eases AIF winding-up rules, approves net settlement for FPI transactions

The Business Guardian

|

March 24, 2026

The Securities and Exchange Board of India on Monday approved a series of regulatory amendments designed to provide Alternative Investment Funds (AIFs) with greater flexibility during the winding-up process and to reduce the compliance burden on funds that are no longer actively managed.

- TBG NETWORK

The proposed solutions include permitting the retention of liquidation proceeds under specific conditions, such as pending litigation or tax demands, and introducing a framework to tag certain entities as inoperative funds to exempt them from standard reporting requirements.

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