The directions apply to various regulated entities (REs), including commercial banks, cooperative banks, All-India Financial Institutions, and Non-Banking Financial Companies. These updated guidelines supersede previous circulars. A key aspect of the new rules is the imposition of limits on Alternate Investment Funds (AIF) investments, i.e. no single RE can contribute more than 10% of an AIF Scheme’s corpus, and the collective contribution from all REs to any AIF Scheme is capped at 20%. Furthermore, if an RE’s contribution exceeds 5% of an AIF Scheme’s corpus, and that AIF has made a downstream investment (excluding equity instruments) in a company that is also a debtor to the RE, the RE must make a 100% provision for its proportionate investment in that debtor company.