ANATOMY OF ALTERNATIVE INVESTMENT FUNDS: SCULPTING RIGHTS, TIME, AND CONTROL

AUTHOR: MOHITA MULLICK* & AYUSH SARAN**

* STUDENT AT AMITY LAW SCHOOL, AMITY UNIVERSITY UTTAR PRADESH, LUCKNOW CAMPUS

** ASSISTANT PROFESSOR AT AMITY LAW SCHOOL, AMITY UNIVERSITY UTTAR PRADESH, LUCKNOW CAMPUS

BEST CITATION -MOHITA MULLICK & AYUSH SARAN, ANATOMY OF ALTERNATIVE INVESTMENT FUNDS: SCULPTING RIGHTS, TIME, AND CONTROL, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (6) OF 2025, PG. 766-772, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

The financial ecosystem of India has welcomed Alternative Investment Funds (AIFs) as essential tools that provide complex capital distribution solutions for both high-net-worth individuals and institutional investors. As AIFs gain increasing power the requirement for strong governance structures together with clear definitions of investor rights coupled with proper control systems becomes more imperative. SEBI made a significant regulatory change in 2024 followed by early 2025 circulars to establish standard infrastructure for investor rights while enhancing time-sensitive compliance alongside mandatory dematerialisation requirements.

This research paper analyses how recent SEBI regulatory measures modify AIF structures both internally and externally from the unified standpoint of rights, time, and control mechanisms. The author seeks to analyses these regulatory measures alongside investor priorities and time-sensitive fund commitments and operational freedoms. The paper evaluates current SEBI orders through doctrinal analysis to analyses key requirements for compliance and changes in investor control definitions. This development brings uniformity in investor relations while setting definite deadlines for dematerialization and strengthening the obligation to act with the utmost duty of care.

Keywords: Alternative Investment Funds, SEBI AIF Regulations, Fund Governance, Investor Rights, Private Equity Structures