New Delhi, June 17 -- The Securities and Exchange Board of India (SEBI) has introduced a new framework that gives Alternative Investment Funds (AIFs) greater flexibility during the winding-up process while also creating a new category called "Inoperative Fund" for schemes facing unresolved liabilities.

The move follows amendments made to the SEBI (Alternative Investment Funds) Regulations on April 18 and is aimed at helping funds manage pending tax, legal and regulatory issues more efficiently before surrendering their registration.

For investors and fund managers, the changes could have a significant impact on how liquidation proceeds are handled after a fund reaches the end of its permissible life.

SEBI has allowed AIFs to hold back ...