SEBI unveils 'AI-only' & LVF schemes for AIFs, offers accredited investor flexibility

• SEBI introduced a new framework for Alternative Investment Funds (AIFs) to migrate to "AI-only" and "LVF" schemes.
• These new schemes offer wider flexibilities and lighter compliance requirements for accredited investors.
• Large Value Funds (LVFs) for accredited investors gain operational flexibility, including exemptions from standard private placement memorandum (PPM) and annual audit of placement terms.
• Existing AIFs can convert to these new formats with investor consent and must update their scheme names.
• Accredited investor status is retained for the scheme's duration, and AI-only schemes have a five-year cap on tenure extension.

Why It Matters: SEBI's new rules offer AIFs and accredited investors greater flexibility and simpler compliance.