The RBI has revised its draft on REs’ AIF investments.

• RBI issued revised draft directions on investment by Regulated Entities (REs) in Alternate Investment Funds (AIFs).

• The guidelines aim to promote financial discipline among REs regarding AIF investments.

• A single RE’s contribution to AIF scheme will be capped at 10% of corpus.

• A collective ceiling of 15% applies for all REs in AIF scheme.

• No curbs on RE investments up to 5% of AIF corpus.

• If RE investment exceeds 5% and has downstream debt investment, RE must make 100% provisions.