SEBI: Reporting format for AIFs reviewed, changed suitably
TL;DR
SEBI has revised AIF reporting requirements, mandating NAV data at ISIN level to depositories by February 2026 to enhance transparency and investor visibility. AIF managers must upload NAV within 30 days, with specific valuation frequencies for different categories, and compliance is required in annual reports. The changes aim to reduce reliance on fund managers but do not alter AIF risks, with operational readiness due by May 2026.
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SEBI: Reporting format for AIFs reviewed, changed suitably
SEBI: Reporting Format for AIFs Reviewed, Changed Suitably
The Securities and Exchange Board of India (SEBI) has revised the reporting requirements for Alternative Investment Funds (AIFs) to enhance transparency and standardization in the sector. Effective February 6, 2026, SEBI mandated that AIFs report Net Asset Value (NAV) data at the ISIN level to depositories, marking a significant shift in disclosure norms. This move aims to improve investor visibility and governance in private markets, aligning AIFs more closely with the transparency standards of public market instruments.
Under the updated framework, AIF managers must upload NAV data to depositories within 30 calendar days of the valuation date—either the date of an independent valuer's report or internal documentation. This requirement applies across all AIF categories, with specific valuation frequencies: Category I and II AIFs must undergo independent valuations at least every six months, while Category III AIFs require independent NAV calculations, with quarterly disclosures for close-ended funds and monthly for open-ended funds.
The circular also clarifies accountability: AIF managers are responsible for ensuring accuracy and timeliness of NAV reporting, with trustees and sponsors required to include compliance in their annual Compliance Test Reports (CTR). Depositories must provide infrastructure for NAV uploads, display methodology disclaimers, and update operational procedures accordingly.
SEBI emphasized that the changes are designed to reduce reliance on fund managers for performance updates and empower investors with direct access to standardized data. However, the regulator noted that these measures do not alter the inherent risks of AIFs, which remain long-term, illiquid, and subject to valuation complexities.
The deadline for operational readiness is May 1, 2026, with immediate regulatory effect. While compliance may incur incremental costs for AIF managers, SEBI views the reforms as critical for building institutional trust and fostering sustainable growth in India's alternative investment ecosystem.
This update reflects SEBI's broader strategy to refine AIF regulations, balancing investor protection with flexibility for sophisticated participants, as seen in parallel amendments to Accredited Investor (AI)-only and Large Value Fund (LVF) frameworks.
