SEBI’s whole-time member Ananth Narayan G. reported that the issue of alternative investment funds (AIFs) evading regulations has been resolved after a year of discussions with the industry. At a CII event, Narayan mentioned that SEBI found instances of AIFs bypassing NPA recognition, FEMA, Sarfaesi, and other SEBI regulations. He stated that the regulator addressed these concerns satisfactorily.
Narayan also acknowledged a trust deficit in the industry, noting that the violations were not disclosed by the industry but by other stakeholders. SEBI collaborated with industry association IVCA to establish a framework that addresses these loopholes. He encouraged industry players to bring governance concerns to the regulator’s attention, emphasizing the importance of trust and transparency in maintaining a healthy industry environment.
The regulator is committed to co-creating a regulatory framework that promotes capital formation while upholding compliance standards. Narayan highlighted the need for industry stakeholders to actively participate in maintaining governance standards and fostering a culture of accountability. The regulator’s efforts align with SEBI’s recent focus on enhancing trust and ease of doing business in the market.
