Direct plan and trail model introduced for AIFs
SEBI has introduced few key regulatory changes for Alternative Investment Funds (AIFs) recently, thereby implementing some of the proposals it had made in its consultation papers released in February 2023. These changes include 1) direct plan for schemes and 2) trail model for distribution commission in AIFs (effective May 1, 2023). Broadly, these changes will bring about transparency, reduce mis-selling as well as level the playing field with instruments like Mutual Funds and PMS, which already have a direct plan and trail model on offering.
April 20, 2023