At a recent event, SEBI member Ananth Narayan revealed that about 20% of investments in Alternative Investment Funds (AIF) aim to bypass financial regulations, amounting to approximately ₹1 lakh crore of questionable investments out of a total ₹5 lakh crore drawdown. He emphasized the importance of investor protection and suggested adopting an accredited investor model to streamline regulations. Narayan also highlighted the need for checks against conflicts of interest in valuation agencies and proposed fund manager registrations to enhance accountability. As AIF investments grow at a 30% CAGR, striking a balance between regulation and industry promotion is crucial.