SEBI has by way of its Circular dated November 23, 2022, clarified that it is currently examining the priority distribution model adopted by certain schemes of AIFs wherein a class of investors (other than the sponsor/manager) share losses more than pro rata to their holding in the AIF in comparison to other classes of investors/unit holders since the latter have priority in distribution over the former. Further, SEBI has directed that such schemes should not accept any fresh commitments or make investments in a new investee company till a view is taken by SEBI on the matter.