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Welcome to Podcast Bites, powered by IndiaLaw LLP.
In this episode, hosted by Jigar, we decode one of the most impactful regulatory updates in India's financial sector the RBI (Investment in AIF) Directions, 2025.
These Directions reshape how banks, NBFCs, and financial institutions invest in Alternative Investment Funds (AIFs), moving from a restrictive approach to a prudential, risk-weighted framework.
What this episode covers:
Who qualifies as a Regulated Entity (RE) under the new rules
The critical definitions of Debtor Company and exposure exclusions
The 10% and 20% investment limits for REs in AIF schemes
The new provisioning and capital deduction norms to curb evergreening
The effective date (January 1, 2026) and key compliance steps for REs
These Directions mark a mature evolution in financial regulation balancing opportunity with risk discipline.
Tune in to understand how this will redefine institutional participation in India's AIF landscape.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
