The Sebi circular outlining rules for migration of alternative investment funds (AIFs) into accredited investor (AI)-only schemes and easing regulations for large value funds (LVFs) will improve the operational flexibility of AIFs and is a milestone for the ecosystem, industry experts said on Tuesday.
“It is transformative not just for the AIF industry. It has ramifications for investors, advisors and manufacturers. Steps like these that allow for innovation and flexibility within the relevant guarddrails open compelling growth avenues for the ecosystem,” said Deepika Asthana, co-founder, Eleveigth.
AMCs accept SEBI move with open arms
AIFs have traced the growth path of mutual funds in recent years with an exponential growth in assets. With nearly ₹13.5 lakh crore in commitments and total AIF investments crossing ₹5.4 lakh crore in FY25 (up 32% YoY), the ecosystem isn’t just growing — it’s rapidly scaling up.
“Sebi is making it easier for large investors and incentivicing right investors,” said Shehzad Madon, MD and CEO of TCG AMC.
What did Puneet Sharma say?
While it is a positive development for AIFs, the total pool of investors accredited till now is fairly small, given complexities associated with obtaining the accredited investor status, said some experts. “That is the bigger challenge that Sebi needs to focus on and solve first,” said Puneet Sharma, CEO and fund manager at Whitespace Alpha.
The presence of close to 1,700 registered AIFs underscores a maturing investor base that seeks sophisticated, high-conviction strategies beyond public equities. For investors genuinely aligned with long-term, value-driven principles, this represents a watershed moment, said experts.
“Regulatory clarity and institutional scale now exist to deploy capital at scale, across credit, PE, real assets and niche alternates. For fund managers ready to deliver discipline and transparency, the opportunity is real,” said Anirudh Garg, promoter of INVasset.