Date: 2026-04-16Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by subsection (1) of Section 30 read with subsection (1) of Section 11, clause (ba) and clause (c) of subsection (2) of Section 11 and subsection (1) and (1B) of Section 12 of the Securities and Exchange Board of India
**Executive Summary**
The Securities and Exchange Board of India (SEBI) notified the Alternative Investment Funds (Amendment) Regulations, 2026, on April 16, 2026. These regulations amend the existing 2012 framework to revise investment thresholds, refine liquidation distribution procedures, and introduce a new classification for inoperative funds. The amendments came into force on the date of their publication in the Official Gazette.
**Key Points / Main Content**
**Revision of Regulatory Thresholds**
* In Regulation 10(c), specifically within the third proviso, the mandatory threshold of “two lakh” has been substituted with “one thousand.”
**Liquidation and Distribution Procedures**
* Regulation 29(7) is amended to clarify that the process of selling assets and distributing proceeds to investors after satisfying all liabilities is now subject to specific conditions.
* The Board reserves the authority to specify these liquidation and distribution conditions from time to time.
**Classification of Inoperative Funds**
* A new sub-regulation (10A) has been inserted into Regulation 29.
* The Board may now tag an Alternative Investment Fund (AIF) as an “inoperative fund.”
* The manner of tagging and the conditions associated with being an inoperative fund will be determined by the Board.
**Impact Analysis**
**Alternative Investment Funds (AIFs)**
**Impact**
AIFs are subject to a significantly reduced threshold in Regulation 10(c) and face new regulatory oversight regarding their operational status and liquidation processes. Funds may now be officially classified as "inoperative" based on Board criteria.
**Action Required**
AIFs must ensure compliance with the revised distribution conditions during liquidation and adhere to any new requirements specified by the Board regarding "inoperative" status.
**Securities and Exchange Board of India (SEBI)**
**Impact**
The Board gains increased regulatory flexibility to define the conditions under which funds distribute assets and how they are categorized when no longer active.
**Action Required**
The Board is responsible for specifying the exact manner and conditions for tagging funds as inoperative and outlining the updated conditions for asset distribution under Regulation 29.
**Investors**
**Impact**
Investors in AIF schemes are affected by the revised procedures for receiving proceeds following the liquidation of assets and the satisfaction of fund liabilities.
**Action Required**
Investors should take note of the new "subject to conditions" clause that may affect the timing or manner of their final distributions.
Key Entities Referenced
Securities and Exchange Board of India (Alternative Investment Funds) (Amendment) Regulations, 2026: The primary notification issued to amend rules concerning the liquidation process and the classification of 'inoperative funds' within the AIF framework.
Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012: The principal regulatory framework being amended, which governs the registration and operation of Alternative Investment Funds in India.
Securities and Exchange Board of India (SEBI): The primary regulator and issuing authority responsible for overseeing the securities market and implementing these investment fund regulations.
Securities and Exchange Board of India Act, 1992: The parent legislation that grants SEBI the statutory power to formulate and amend regulations for the Indian securities market.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-एम.एच.-अ.-18042026-271895
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 277] िई ददपली, बहृ स्ट्ि जतिार, अप्रलै 16, 2026/चत्रै 26, 1948 ष 22, 1947
No. 277] NEW DELHI, THURSDAY, APRIL 16, 2026/CHAITRA 26, 1948 s 1947
भारतीय प्रजतभजू त और जिजिमय बोडड
अजधसचू िा
मब ं ई, 16 अप्रलै , 2026
भारतीय प्रजतभजू त और जिजिमय बोडड
[आिक जपिक जिजिधाि (जिििे ) जिजधया]ाँ (सिं ोधि) जिजियम, 2026
स.ं सबे ी/एलएडी-एिआरओ/िीएि/2026/303.—बोडड, भारतीय प्रजतभूजत और जिजिमय बोडड अजधजियम, 1992
(1992 का 15) की धारा 11 की उि-धारा (1), धारा 11 की उि-धारा (2) के खंड (खक) एिं खंड (ग) तथा धारा 12 की
उि-धारा (1) एि ं उि-धारा (1ख) के साथ िठित धारा 30 की उि-धारा (1) द्वारा प्रदाि की गई िजियों का प्रयोग करत े
हुए, एतद्द्वारा भारतीय प्रजतभूजत और जिजिमय बोड ड [आि कजपिक जिजिधाि (जििेि) जिजधयााँ] जिजियम, 2012 का और
संिोधि करिे के जलए जिम्नजलजखत जिजियम बिाता ह,ै अथाडत,् -
1. इि जिजियमों को भारतीय प्रजतभूजत और जिजिमय बोड ड [आि कजपिक जिजिधाि (जििेि) जिजधयााँ] (संिोधि)
जिजियम, 2026 कहा िा सकेगा ।
2. ये जिजियम रािित्र म ेंइिके प्रकाजित होिे की तारीख से लाग ूहोंगे ।
2738 GI/2026 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
3. भारतीय प्रजतभूजत और जिजिमय बोडड [आि कजपिक जिजिधाि (जििेि) जिजधयााँ] जिजियम, 2012 म,ें-
I. जिजियम 10(ग) के तीसरे िरंतक में, िब्दों “दो लाख” के स्ट्थाि िर िब्द “एक हिार” आ िाएगाँ े ।
II. जिजियम 29 में,
क. उि-जिजियम (7) म,ें िब्दों तथा जचह्िों “िठरसमािि (जलदिडेिि) की अिजध के भीतर, आजस्ट्तयों का
समािि दकया िायगे ा, और आि कजपिक जिजिधाि (जििेि) जिजध या आि कजपिक जिििे जिजध की
स्ट्कीम म ें जिजिधािकताडओं (जििेिकों) को प्रोद्भूत आगम सभी दाजयत्ि च कािे के िश्चात ् उिमें जितठरत
की िायेंगी” के स्ट्थाि िर िब्द तथा जचह्ि “जलदिडेिि (िठरसमािि) की अिजध के भीतर, संिजियों
आदद (असेट्स) की जबक्री की िाएगी (को जलदिडेट दकया िाएगा), और जबक्री स े िो िैसा आएगा उसम ें
स े सभी देिदाठरयों की च कौती करिे के बाद उसे ए.आई.एफ. (आि कजपिक जििेि जिजध) या
ए.आई.एफ. की स्ट्कीम के जिििकों म ें बााँट ददया िाएगा, हालााँदक इस संबंध म ें बोड ड द्वारा समय-समय
िर जिधाडठरत की िाि े िाली ितें भी िरू ी करिी होंगी” आ िाएाँगे ।
ख. उि-जिजियम (10) के बाद और उि-जिजियम (11) से िहले, जिम्नजलजखत िया उि-जिजियम िोडा
िाएगा, अथाडत,् -
“(10क) ए.आई.एफ. को एक इिऑिरेठटि फंड के रूि म ें िगीकृत दकया िा सकेगा, उसी प्रकार िैसा
बोडड समय-समय िर बताए और उन्हीं ितों के तहत िो बोड डसमय-समय िर जिधाडठरत करे ।”
अजमत प्रधाि, कायडिालक जिदिे क
[जिज्ञािि-III/4/असा./46/2026-27]
ठटप्िणी:
भारतीय प्रजतभूजत और जिजिमय बोडड [आि कजपिक जिजिधाि (जििेि) जिजधया]ाँ जिजियम, 2012 (अजधसूचिा सं.
एल.ए.डी.-एि.आर.ओ./िी.एि./2012-13/04/11262) 21 मई, 2012 को भारत के रािित्र म ें प्रकाजित हुए थ,े और
िो अंजतम बार 19 ििम्बर, 2025 को भारतीय प्रजतभूजत और जिजिमय बोडड [आि कजपिक जिजिधाि (जििेि) जिजधया]ाँ
(तीसरा संिोधि) जिजियम, 2025, अजधसूचिा फा. स.ं सेबी/एलएडी-एिआरओ/िीएि/2025/274, द्वारा संिोजधत
हुए थ े।
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 16th April, 2026
SECURITIES AND EXCHANGE BOARD OF INDIA (ALTERNATIVE INVESTMENT FUNDS)
(AMENDMENT) REGULATIONS, 2026
No. SEBI/LAD-NRO/GN/2026/303.–– In exercise of the powers conferred by sub-section (1) of
Section 30 read with sub-section (1) of Section 11, clause (ba) and clause (c) of sub-section (2) of Section
11 and sub-section (1) and (1B) of Section 12 of the Securities and Exchange Board of India Act, 1992 (15
of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange
Board of India (Alternative Investment Funds) Regulations, 2012, namely, –
1. These Regulations may be called the Securities and Exchange Board of India (Alternative
Investment Funds) (Amendment) Regulations, 2026.
2. They shall come into force on the date of their publication in the Official Gazette.[भाग III—खण् ड 4] भारत का रािित्र : असाधारण 3
3. In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, –
I. In the third proviso to regulation 10(c), the words “two lakh” shall be substituted with the
words “one thousand”.
II. In regulation 29,
a. in sub-regulation (7), after the words “satisfying all liabilities”, the words and
symbol “, subject to conditions as may be specified by the Board from time to
time” shall be inserted.
b. after sub-regulation (10) and before sub-regulation (11), the following new sub-
regulation shall be inserted, namely, -
“(10A) An Alternative Investment Fund may be tagged as an inoperative fund, in
such manner and subject to conditions as may be specified by the Board from time
to time.”
AMIT PRADHAN, Executive Director
[ADVT.-III/4/Exty./46/2026-27]
Note:
The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012
was published in the Gazette of India on May 21, 2012 vide notification No. SEBI/LAD-NRO/GN/2012-
13/04/11262 and was last amended on November 19, 2025 by the Securities and Exchange Board of India
(Alternative Investment Funds) (Third Amendment) Regulations, 2025 vide notification No. SEBI/LAD-
NRO/GN/2025/274.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.