+
Sebi WTM Ananth Narayan notes AIFs invest 65% of committed funds
ECONOMY & POLICY

Sebi WTM Ananth Narayan notes AIFs invest 65% of committed funds

Ananth Narayan, a whole-time member (WTM) of the Securities and Exchange Board of India (Sebi), stated that there is a discrepancy in the actual investments compared to the commitments raised by alternative investment funds (AIFs), which have surged to around 10.84 trillion. He mentioned that, for some unknown reason, the actual investments for funds that have closed since 2012 appear to be only 60?65 per cent of the commitments, weighted by value. Narayan expressed the desire to further explore this phenomenon with the industry to understand the reasons behind it or to confirm if the data interpretation is accurate.

Narayan added that only 7 per cent of these actual investments have been directed towards startups. As of December 2023, the AIF industry boasted over 140,000 investors, with investments reaching approximately 4 trillion.

Addressing industry executives at a conclave organised by the Indian Private Equity and Venture Capital Association, Narayan raised concerns about valuations, noting instances where they remained 'stale' for an extended period or experienced sharp drops as the fund approached maturity.

The Sebi official revealed plans to expedite the approval process for AIF applications, aiming to reduce the time to one month. He mentioned that, as of now, no applications have been pending for more than two months, whereas there were over 55 applications pending in December 2022.

Emphasizing the need to prevent the evergreening of loans and the circumvention of regulations through AIFs, Narayan stated that the standards forum has drafted dos and don'ts for AIF managers and funds. Sebi is also working on defining the specifics of what constitutes circumvention, along with a code of conduct.

According to sources, the AIF industry had approached the Ministry of Finance, seeking relaxation on the directive issued by the Reserve Bank of India that restricts investments in funds with debtor links.

Ananth Narayan, a whole-time member (WTM) of the Securities and Exchange Board of India (Sebi), stated that there is a discrepancy in the actual investments compared to the commitments raised by alternative investment funds (AIFs), which have surged to around 10.84 trillion. He mentioned that, for some unknown reason, the actual investments for funds that have closed since 2012 appear to be only 60?65 per cent of the commitments, weighted by value. Narayan expressed the desire to further explore this phenomenon with the industry to understand the reasons behind it or to confirm if the data interpretation is accurate. Narayan added that only 7 per cent of these actual investments have been directed towards startups. As of December 2023, the AIF industry boasted over 140,000 investors, with investments reaching approximately 4 trillion. Addressing industry executives at a conclave organised by the Indian Private Equity and Venture Capital Association, Narayan raised concerns about valuations, noting instances where they remained 'stale' for an extended period or experienced sharp drops as the fund approached maturity. The Sebi official revealed plans to expedite the approval process for AIF applications, aiming to reduce the time to one month. He mentioned that, as of now, no applications have been pending for more than two months, whereas there were over 55 applications pending in December 2022. Emphasizing the need to prevent the evergreening of loans and the circumvention of regulations through AIFs, Narayan stated that the standards forum has drafted dos and don'ts for AIF managers and funds. Sebi is also working on defining the specifics of what constitutes circumvention, along with a code of conduct. According to sources, the AIF industry had approached the Ministry of Finance, seeking relaxation on the directive issued by the Reserve Bank of India that restricts investments in funds with debtor links.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code