Category III AIF investment scope allows derivatives, complex products and leverage with investor consent and disclosure. Category III Alternative Investment Funds may invest in listed or unlisted securities, derivatives, units of other AIFs, complex or structured products, deal in goods from physical settlement of commodity derivatives, and trade credit default swaps as prescribed. They may use leverage or borrow with investor consent and within Board specified limits, and must periodically disclose overall leverage, leverage from cash borrowings, leverage from derivatives or complex products, and main leverage sources to investors and the Board. These funds are regulated by Board directions on operational, prudential and conduct standards.