The Securities and Exchange Board of India (SEBI) has notified amendments to the Alternative Investment Funds (AIFs) regulations, mandating pro rata and pari passu rights for investors, effective November 18, 2024. The new regulations ensure that investors’ rights are proportional to their commitments, with exemptions specified by SEBI. Additionally, investors may have equal rights, though differential rights can be granted to select investors without harming others. SEBI aims to promote fair treatment of AIF investors while allowing operational flexibility for government entities and multilateral institutions to attract private capital. Further guidelines will clarify compliance requirements.