On December 13, 2024, India’s market regulator Sebi announced exemptions from the requirement of maintaining pro-rata rights in alternative investment funds (AIFs). This change allows for flexibility in cases where investors are excluded from investments or fail to meet contribution obligations. Specific entities, like government-backed organizations, can also accept subordinate units with lower returns. The measures aim to enhance fairness and investor protection while accommodating diverse investor needs. Additionally, Sebi clarified the classification of the Corporate Debt Market Development Fund as a Category I AIF, designed to bolster confidence in the corporate debt market during stress.