Domestic capital takes a larger role in AIF growth, says Shri Ananth Narayan Gopalkrishnan at IVCA Conclave 2026

Speaking at the IVCA Conclave 2026, Shri Ananth Narayan Gopalkrishnan, Member, SAARG Committee at the Pension Fund Regulatory and Development Authority and Ex Whole Time Member, Securities and Exchange Board of India, said commitments in AIFs have reached about ₹16 lakh crore, with 70% coming from domestic participants, as he called for policy consistency, regulatory clarity, and stronger long term capital formation.

India’s alternate capital market is seeing deeper domestic participation, with commitments in alternative investment funds now at about ₹16 lakh crore, according to Shri Ananth Narayan Gopalkrishnan, who said 70% of those commitments are coming from domestic participants.
Shri Ananth Narayan Gopalkrishnan, Member, SAARG Committee at the Pension Fund Regulatory and Development Authority and Ex Whole Time Member, Securities and Exchange Board of India, was speaking during a fireside chat with Gopal Jain, Managing Partner and Co Founder, Gaja Capital, on the theme The Policy Roadmap for Investments in India at Day 2 of the Indian Venture and Alternate Capital Association Conclave 2026 in Mumbai.

The session examined the evolution of India’s regulatory framework and its role in shaping a stable and credible investment environment. Shri Narayan said sustained capital formation depends on policy consistency, regulatory clarity, and strong institutional foundations. He noted that India’s capital markets have strengthened over the past decade through improved governance standards, stronger disclosure norms, and deeper institutional participation.
“As I mentioned, the commitments today in AIFs are about ₹16 lakh crore. Seventy percent of those commitments are from domestic participants. This rise of the industry is just remarkable,” he said.

On the growth of alternative investments, Shri Narayan said the increasing scale of private capital reflects both higher domestic participation and continued global interest in India’s long term economic trajectory. He said it remains important to maintain a balanced regulatory approach that encourages innovation and market development while protecting investors and preserving systemic stability.
“If you move towards 100% accredited investor model, I believe you have a strong case to make to SEBI to kill every single clause related to pari passu and pro rata, which is essentially for investor protection,” Shri Narayan said.

He added that as India works to deepen long term pools of capital across asset classes, constructive engagement between regulators, policymakers, and market participants will remain important. A predictable and transparent policy environment, he said, supports long duration investments as well as enterprise growth, infrastructure development, and financial resilience.
Addressing the broader investment landscape, Shri Narayan said institutional strength and regulatory credibility would continue to anchor investor confidence amid changing global economic conditions. He added that India’s regulatory institutions have shown adaptability and prudence, helping position the country as a stable destination for long term capital.

“What you should ask SEBI is, ‘Let us as fund managers certify who is an accredited investor, and you come and inspect us later on in case we are not doing our job properly’. Then argue to the regulator that, ‘You don’t need to worry about protecting an Accredited Investor because they have the wealth, they have the savvy, and they understand markets’,” he added.
The IVCA Conclave 2026 brought together policymakers, regulators, investors, and industry leaders from private equity, venture capital, credit markets, and infrastructure financing to discuss the opportunities and challenges shaping India’s alternate capital ecosystem.

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