AIFs slammed for circumvention of regulations
时间:2024-06-29 03:18:51 阅读(143)
The use of alternative investment funds (AIFs) for circuitous routing of funds into stressed entities or to circumvent norms around funding raises questions on whether regulations should be eased, Ananth Narayan, whole time member of Sebi, said on Thursday.
Speaking at a conference organised by the Confederation of Indian Industry, he said AIFs are structured to circumvent. Though he declined to disclose any figure, Narayan said while there were no breaches as regards the “letter of the law”, certain entities were found acting in a manner that breaches the “spirit of the law”. Some entities also use the route to fund stressed entities, which use funds to repay earlier loans, he pointed out.
He clarified that these are not cases that will go into enforcement, but will be probed to see how the regulations can be streamlined — and that Sebi is in constant communication with other regulators like the RBI.
Emphasising that AIF regulations “need to be light-touch”, he asked industry players to get together and devise an industry standard forum with the objective of representing their suggestions. He assured the industry of ease of doing business if they adhere to the set standards.
Narayan acknowledged the contribution of the AIF industry towards capital formation, saying that it has seen a 40% CAGR in terms of both commitment and investments. At present, there are investments to the tune of Rs 3.5 trillion, and a further `8.5 trillion in commitments.
Narayan emphasised that the ultimate aim of the regulator was to stop both Type 1 errors, which is “to allow bad things to happen”, and Type 2 errors, which is “to stop good things from happening”.
猜你喜欢
- Manappuram Finance, Oil India, Dr Reddy’s Labs among 133 stocks that hit 52-week highs; 15 touch 52-week lows
- pura, is set to finish in six months.
The launched works involve rehabilitating the Galgamuwa Railway Station and upgrading the railway line from Maho to Anuradhapura, including additional tasks. Another project is the second phase of track rehabilitation from Maho to Omanthai (128 kms), funded by a $318 million Indian Line of Credit.
Transport Minister Gunawardena praised the efforts of Indian company IRCON in Sri Lanka and called for more cooperation in the railway sector. State Minister Shantha Bandara and officials from the Sri Lankan Ministry of Transport attended the event.
Railways is a priority for Indian assistance in Sri Lanka, with over $1 billion invested under five Indian Lines of Credit. IRCON has been involved in Sri Lanks since 2009. It has contributed to the modernisation of Sri Lanka Railways by reconstructing the entire railway line network in the Northern Province (253 Km) and upgradation of the Southern line (115 km), as well as improving safety through advanced signalling and telecommunication systems.
Despite Sri Lanka’s debt standstill in April 2022, India’s support under various Lines of Credit has continued.
(With PTI inputs)
- Nifty downtrend may continue if it breaks 16850, resistance at 17211; SRF, Paytm among top stocks to buy
- Nifty could top 17900 above 17750, Bank Nifty may hit 41000 if it closes above 39500; here’s what analysts say
- Market HIGHLIGHTS- Sensex ends 379 pts up, Nifty at 17,829; Reliance Industries, HDFC twins top index gainers
- MSCI drops Adani Transmission, Adani Total Gas from MSCI India Index in quarterly review
- Nifty gains 15%, India VIX eases 47% in April; volatility on cards for May, avoid these sectors
- Mukesh Ambani’s Jio Financial Services to enter FTSE indices from 20 July
- Nifty crosses previous swing high, short-term trend reverses; Laurus Labs, JK Paper among stocks to buy