Posted 12/6/2023, 10:58:00 AM
SEBI and RBI Raise Alarm Over Misuse of Alternative Investment Funds to Conceal Bad Loans
- India's market regulator SEBI and central bank RBI share concerns over alternate investment funds (AIFs) masking bad loans
- SEBI has seen dozens of cases of AIFs being used to avoid recognizing non-performing assets (NPAs)
- RBI agrees with SEBI's assessment of the issue involving Rs 150-200 billion where AIFs circumvented rules
- SEBI intends to enforce a code of conduct to prevent AIFs from being misused
- SEBI has asked that all liabilities and assets of these funds be held in dematerialized form for greater transparency