Sep 30, 2025

Investments in AIFs by REs

RBI has, issued the Reserve Bank of India (Investment in AIF) Directions, 2025, on July 29, 2025, (effective January 1, 2026) limiting an RE’s investment in an AIF to 10% (20% for all REs combined). Any investment by an RE in subordinated units to be deducted from capital funds, and 100% provision would be required if an AIF lends to a borrower company of the RE investor (unless RE’s investment in the AIF is five percent or less).

TAGS

SHARE

DISCLAIMER

These are the views and opinions of the author(s) and do not necessarily reflect the views of the Firm. This article is intended for general information only and does not constitute legal or other advice and you acknowledge that there is no relationship (implied, legal or fiduciary) between you and the author/AZB. AZB does not claim that the article's content or information is accurate, correct or complete, and disclaims all liability for any loss or damage caused through error or omission.