Kresha Gupta Highlights Governance Risks in SEBI’s New AIF Norms
Date: October 1, 2025
Kresha Gupta, Founder and Director of StepTrade Capital, has expressed concerns over the Securities and Exchange Board of India's (SEBI) recent revisions to the Alternative Investment Fund (AIF) regulations. While acknowledging the intent to enhance market integrity, Gupta cautioned against potential governance challenges arising from the new norms.
If you ease audits and oversight for high-stakes funds, you run the risk of front-running, mismanagement, or weak minority protections downstream—especially for larger pools," Gupta remarked. She emphasized that larger funds handling significant capital may require stronger—not weaker—governance to maintain investor trust.
Gupta's comments underscore the need for a balanced approach in regulatory reforms, ensuring that enhanced flexibility does not compromise the safeguards essential for maintaining market discipline and protecting investor interests.