What has SEBI asked AIFs to disclose to investors while on-boarding them?

The Securities and Exchange Board of India (SEBI) has asked Alternative Investment Funds(AIFs) to provide the option of direct plans for its investors. Through such plans, investors can participate in an AIF without having to pay any distribution fee or placement fee.    AIFs are funds that cater to wealthy individuals willing to invest more than ₹1 crore in a single go.The regulator has also asked the AIFs to disclose distribution fees to the investors while on-boarding them.     Also, for category III AIFs, which invest in listed securities, the distribution fee needs to be charged on a trail basis. These measures have been brought in to enhance the transparency and curb misspelling.