SEBI has announced that investors who default on or exclude themselves from AIF drawdown requests will not receive pro-rata rights. Additionally, maintaining these rights won’t apply if investors share profits with the fund manager. To accommodate low-risk investors, AIFs can now allow certain entities to subscribe to junior units, accepting lower returns and sharing more losses. Existing AIFs using a priority distribution model must not accept new commitments or investments. Differential rights can be offered if transparently declared, but must not affect other investors’ rights. A deadline of February 25 is set for reporting differential rights, effective immediately.