RBI caps investment by banks, NBFCs at 20% of corpus of AIF scheme

RBI caps investment by banks, NBFCs at 20% of corpus of AIF scheme

RBI issues revised guidelines capping RE investment in AIF schemes at 20%, aiming to strengthen risk management process.

RBI Update - Reserve Bank of India (Investment in AIF) Directions, 2025 - Mehta & Mehta

Please find the following update under RBI The Reserve Bank of India (Investment in AIF) Directions, 2025, have been issued to revise and consolidate the regulatory framework governing investments by Regulated Entities (REs) in Alternative Investment Funds (AIFs). These Directions supersede the earlier circulars dated December 19, 2023, and March 27, 2024, and have been issued under the powers conferred by various provisions of the Banking Regul…

RBI caps investment by a bank in AIF scheme at 10 percent

New Delhi: The Reserve Bank on Tuesday capped contributions by a single regulated entity (RE), including banks and NBFCs, at 10 percent of the corpus of an Alternative Investment Fund (AIF) scheme. Also, collective contribution by all REs in any AIF scheme should not be more than 20 percent of the corpus of that scheme, said the Reserve Bank of India (Investment in AIF) Directions, 2025. REs refer to banks, NBFCs and All-India Financial Institut…

RBI Issues Stricter AIF Investment Norms For Lenders, Caps At 10%

The Reserve Bank of India has tightened norms for investments by regulated entities in alternative investment funds, issuing a revised set of directions to replace its earlier circulars from December 2023 and March 2024.These new guidelines will come into force from Jan. 1. Under the revised norms, a single bank or a non-bank financial company cannot contribute more than 10% of an AIF's scheme's corpus, according to a press release on Tuesday."B…