Sebi notifies pro-rata distribution norms for AIFs

Capital market regulator Securities and Exchange Board of India (Sebi) has notified the changes in regulations governing alternative investment funds (AIFs) mandating them to provide investors rights and distribution of proceeds in proportion (pro-rata) to their commitments in the scheme.The pro-rata mandate is to ensure that benefits get distributed in ratio of the commitments made by an investor in the AIF scheme while pari-passu rights are to treat investors equally.