India’s market regulator, SEBI, has identified over ₹1 trillion in questionable investments by alternative investment funds (AIFs), raising concerns about regulatory compliance. Ananth Narayan G emphasized the need for stronger investor protection while balancing light regulation. He noted that circumventions included violations of Reserve Bank of India and Foreign Exchange Management Act regulations. Narayan suggested adopting an accredited investor model to allow more flexible regulation for sophisticated investors while ensuring retail investor safety. He acknowledged challenges in creating a sufficient accredited investor pool but stressed the importance of starting this process to enhance the integrity of the financial system.