The Securities and Exchange Board of India (SEBI) has proposed reforms allowing Category II AIFs to invest fully in listed debt, enhancing liquidity and flexibility. SEBI lawyer insights highlight that this shift could improve capital allocation and create new opportunities for investors.

SEBI expert lawyer Vaneesa Agrawal, founder of Thinking Legal, analyzes these changes, emphasizing their impact on liquidity and investment efficiency. SEBI’s broader efforts to strengthen AIF regulations are explored in a Thinking Legal analysis. Additionally, SEBI’s push for greater transparency in AIFs supports these reforms by reinforcing investor confidence.