SEBI Issues 5 Consultation Papers Proposing Changes To The AIF Regulations

In furtherance of its endeavour to review the regulatory norms on alternative investment funds ("AIFs"), the Securities and Exchange Board of India ("SEBI"), on February 3, 2023, issued five consultation papers containing such proposed alterations. Each such consultation paper discussed one proposed aspect of review—detailing the objective, background, issues for consideration, and proposal in relation thereto. The points of review are as follows:

1. Eligibility criteria for the key investment team and prescribing qualification for compliance officer of manager of AIF under the SEBI (Alternative Investment Funds) Regulations, 2012 ("AIF Regulations"):

Regulation 4(g) of the extant AIF Regulation sets out the eligibility criteria the key investment team of the manager of an AIF is required to have. Highlighting the fact that such requirements may act as barriers to new age managers with the requisite expertise in fund management and generating returns for the