SEBI member Ananth Narayan says 20% of AIF investments circumvent financial regulations.

• Narayan cites instances of funds supplementing existing financial sector regulations.

• Despite a ₹5 lakh crore drawdown, around ₹1 lakh crore of investment is questionable in terms of regulatory intent.

• AIFs are often used by high net-worth individuals for high-return, high-risk investment.