**Executive Summary**
This circular, issued by the Securities and Exchange Board of India (SEBI) on February 06, 2026, concerns the reporting of the value of units of Alternative Investment Funds (AIFs) to depositories. It mandates AIFs to upload the latest available NAVs corresponding to each ISIN of units to the depository system by May 01, 2026, or within 30 days from the date of valuation, whichever is later. It further details regulations regarding valuation frequency and responsibilities for timely and accurate NAV uploading.
**Key Points / Main Content**
* **Valuation of AIF Investments:**
* Category I and Category II AIFs must value their investments at least once every six months by an independent valuer, extendable to one year with 75% investor approval.
* Category III AIFs must ensure independent calculation of NAV, with disclosure intervals not exceeding a quarter for closed-ended funds and a month for open-ended funds.
* **Reporting of NAV to Depositories:**
* AIFs must upload the latest available NAV corresponding to each ISIN of units to the depository system through their RTAs by May 01, 2026, or within 30 days from the valuation date, whichever is later.
* The valuation date is defined as the date of the valuation report (if valued by independent valuers) or the date documented in the internal records of the fund (if valued by internal valuers).
* The manager of the AIF is responsible for ensuring timely and accurate uploading of NAV.
* **Depositories' Responsibilities:**
* Build necessary infrastructure for uploading of NAV by RTAs and for reflection of the same in the depository system.
* Incorporate a specific disclaimer when displaying AIF NAV, directing users to the fund documents for more details.
* Make necessary amendments to Bye-laws, Rules, and Regulations for implementation.
* Bring the provisions of the circular to the notice of their members and disseminate the same on their websites.
* **Compliance:**
* The trustee/sponsor of AIF must ensure that the 'Compliance Test Report' includes compliance with the provisions of this circular.
* **Effective Date:** The provisions of the circular are effective immediately.
**Impact Analysis**
**Alternative Investment Funds (AIFs)**
* **Impact:** Required to ensure compliance with the new reporting requirements for NAVs.
* **Action Required:** Implement the necessary procedures for uploading NAVs to depositories through RTAs, adhering to the specified deadlines and valuation guidelines.
**Registrar and Transfer Agents (RTAs)**
* **Impact:** Responsible for facilitating the NAV uploading process on behalf of AIFs.
* **Action Required:** Ensure systems are in place to upload the latest NAV corresponding to each ISIN of units of the AIF in the depository system.
**Depositories**
* **Impact:** Need to enhance infrastructure to accommodate the new NAV reporting requirements.
* **Action Required:** Build necessary infrastructure for uploading of NAV by RTAs and for reflection of the same in the depository system; incorporate the specified disclaimer, amend bye-laws, and disseminate information to members.
Key Entities Referenced
SEBI (Alternative Investment Funds) Regulations, 2012: Regulations governing Alternative Investment Funds in India.
Alternative Investment Funds (AIFs): The primary subject of the circular, affecting reporting requirements.
Securities and Exchange Board of India (SEBI): The regulator issuing the circular and responsible for the enforcement.
Section 11(1) of the Securities and Exchange Board of India Act, 1992: Legal basis for SEBI's power to issue the circular.
Depositories: Entities which will receive the reporting of value of units of AIFs
CIRCULAR
HO/19/34/11(8)2025-AFD-POD1/I/4335/2026 February 06, 2026
To,
All Alternative Investment Funds
All Depositories
All Registrar and Transfer Agents
Dear Sir/Madam,
Sub: Reporting of value of units of Alternative Investment Funds (AIFs) to Depositories
1. In terms of Regulation 10 of SEBI (Alternative Investment Funds) Regulations, 2012 (AIF
Regulations), AIFs may raise funds from any investor whether Indian, foreign or non-resident
Indians by way of issue of units. The value of units issued by AIFs is calculated based on the
valuation of investment portfolio of AIF / scheme of AIF as under:
1.1. In terms of Regulation 23(2) of AIF Regulations, Category I and Category II AIFs shall
undertake valuation of their investments, atleast once in every six months, by an
independent valuer appointed by the AIF:
Provided that such period may be enhanced to one year on approval of atleast seventy-
five percent of the investors by value of their investment in the AIF.
1.2. In terms of Regulation 23(3) of AIF Regulations, Category III AIFs shall ensure that
calculation of the Net Asset Value (NAV) is independent from the fund management
function of the AIF and such NAV shall be disclosed to the investors at intervals not
longer than a quarter for close ended funds and at intervals not longer than a month
for open ended funds.
2. Further, in terms of Regulation 10(aa) of AIF Regulations and SEBI circular no.
SEBI/HO/AFD/PoD/CIR/2023/96 dated June 21, 2023 (Subsumed in Chapter 20 of Master
Circular for AIFs dated May 07, 2024), AIFs have been mandated to issue units in
dematerialized (demat) form.
3. In view of the above, and to leverage the depository infrastructure for enhancing
transparency and operational efficiency, and to facilitate system readiness of AIFs,
Registrars and Transfer Agents (RTAs) and Depositories, the following is specified:
3.1. AIFs, through their RTAs, shall upload the latest available NAV corresponding to each
ISIN of units of the AIF in the depository system before May 01, 2026, or within 30
days from the date of valuation of the investment portfolio, whichever is later.
3.2. For the purpose of aforesaid mandate, the valuation date shall be considered as under:
a) In case the valuation is carried out by independent valuers – Date of valuation
report.
Page 1 of 2b) In case the valuation is carried out by an Internal valuers – Date on which the
valuation is documented in the internal records of the fund.
3.3. The manager of the AIF shall be responsible for ensuring timely and accurate
uploading of NAV.
3.4. The Depositories shall:
a) build necessary infrastructure for uploading of NAV by RTAs and for reflection of
the same in the depository system;
b) incorporate the following disclaimer wherever AIF NAV is being displayed:
Net Asset Value (NAV) being shown is on the basis of valuation methodology and
accounting practice followed by your respective AIF. Please refer to your fund
documents for more details.
c) make necessary amendments to the relevant Bye-laws, Rules and Regulations
for the implementation of the above provisions; and
d) bring the provisions of this circular to the notice of their members / participants
and also disseminate the same on their websites.
4. The trustee/sponsor of AIF, as the case may be, shall ensure that the ‘Compliance Test
Report’ prepared by the manager in terms of Chapter 15 of the Master Circular for AIFs,
includes compliance with the provisions of this circular.
5. The provisions of this circular shall come into force with immediate effect.
6. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities
and Exchange Board of India Act, 1992 read with Regulation 10, Regulation 23 and
Regulation 36 of SEBI (Alternative Investment Funds) Regulations, 2012, to protect the
interests of investors in securities and to promote the development of, and to regulate the
securities markets.
7. The circular is available on SEBI website at www.sebi.gov.in under the categories “Legal
framework -Circulars" and "Info for - Alternative Investment Funds”.
Yours faithfully,
Anshul Jagdish Goyal
Deputy General Manager
Tel no.: +91-22-26449389
anshulg@sebi.gov.in
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