The Securities and Exchange Board of India (SEBI) amended the Alternative Investment Funds (AIF) Regulations on August 5, 2024. Key changes include extending the tenure of close-ended AIFs for large value funds for accredited investors from 2 to 5 years, subject to unitholder approval. Additionally, regulations regarding borrowing by Category I and II AIFs were clarified, allowing limited borrowing for temporary operational needs while prohibiting leverage for investment purposes. Both categories may now encumber equity in infrastructure-related investee companies for borrowing. DMD Advocates, a prominent law firm, emphasizes the need for formal legal advice regarding these changes.