Alternate investment funds could face harsher regulation in India
- Not long ago, AIFs were found to have helped shadow lenders evergreen their loan books. The questionable deals of global private equity firms have made stiffer rules more or less inevitable.
There are plenty of high-performing private investment vehicles in India, but it’s the few set up for dubious purposes that may bring harsher regulatory scrutiny. So far, the most egregious use of alternative investment funds (AIFs) has been by non-bank finance companies (NBFCs), several of which employ bespoke structures for regulatory aRBItrage.