The regulatory dance around AIFs just got a double spin with both the RBI and SEBI making moves. The RBI has stated that Banks and NBFCs can't invest in AIFs funding borrowers they already have loans to. While SEBI has mandated all fresh AIF investments after September 2024 to be dematerialized. Even as it is a big step against the evergreening of loans, it could also affect ₹20,000-40,000 crore of AUM if lenders have to unwind their investments. Is this an impractical solution to a genuine problem? Host Anupriya Nair gets you details from Deepak Shenoy, Founder and CEO - Capitalmind, and ET’s Sugata Ghosh and Shilpy Sinha. Tune in to the latest episode of The Morning Brief podcast!
Credits: Reserve Bank of India