New Delhi, March 23 -- The Securities and Exchange Board of India on Monday approved a series of regulatory amendments designed to provide Alternative Investment Funds (AIFs) with greater flexibility during the winding-up process and to reduce the compliance burden on funds that are no longer actively managed.

The proposed solutions include permitting the retention of liquidation proceeds under specific conditions, such as pending litigation or tax demands, and introducing a framework to tag certain entities as inoperative funds to exempt them from standard reporting requirements.

The decisions were detailed by SEBI Chairperson Tuhin Kanta Pandey during an address following the 213th board meeting held in Mumbai on Monday. Under the new...