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HomeNewsBusinessMarketsSEBI ready to allow contentious tranche investments again, if AIFs self-regulate: Official

SEBI ready to allow contentious tranche investments again, if AIFs self-regulate: Official

Though tranching is important for a well-functioning financial market, the market regulator had imposed restrictions on it as many banks used this method for evergreening of loans

December 08, 2023 / 15:36 IST
SEBI ready to allow contentious tranche investments again, if AIFs self-regulate: Official

Essentially, tranches reflect different degrees of credit risk. A senior tranche of investors is prioritised in distribution of proceeds over the junior tranche. Senior tranches get lower yields, reflecting their reduced risk.

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