As per RBI guidelines, no RE can individually contribute more than 10 percent of the corpus of an AIF scheme
The Reserve Bank of India (RBI) has decided to enable SWAMIH (Special Window for Affordable and Mid-Income Housing) Investment Fund-I under the specified exemption category when it comes to investments by regulated entities (REs). This is expected to attract inflows into the fund from sustainable energy sources such as banks.
Thus, investments by renewable energy sources in SWAMIH will not be subject to limits on investments and facilities under the Reserve Bank of India (Investment in AIF) Directions, 2025.
SWAMIH was announced on November 6, 2019. This ‘Special Window’, in the form of AIF, provides priority debt financing for the completion of stalled housing projects. SBI Ventures has been assigned the role of investment manager for this special desk.
The fund achieved its first close with a capital commitment of ₹10,037.5 crore and its last close with a capital commitment of ₹15,530 crore on December 6, 2022.
Restrictions on investments and facilities
In case of investments by real estate managers in other AIFs, the RBI has prescribed limits on investments and provisions.
According to the Reserve Bank of India (Investment in AIF) Directions, 2025, no RE can individually contribute more than 10 percent of the corpus of an AIF scheme.
The collective contribution of all REs in an AIF scheme should not exceed 20 percent of the corpus of that scheme.
If an RE contributes more than five percent to the corpus of an AIF scheme, which also has downstream investments (other than equity instruments) in a debtor company of the RE, then the RE is required to make a 100 percent provision equal to its proportionate investment in the debtor company through the AIF scheme.
The aforementioned clause is subject to a maximum of the direct loan and/or investment exposure of the real estate company to the debtor company.
If a real estate company’s contribution is in the form of subordinated units, it must deduct the entire investment from its capital funds – proportionately from both Tier-1 and Tier-2 capital (if applicable).
Published on October 24, 2025
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