The Securities and Exchange Board of India (SEBI) on February 06, 2026, notified regarding the Reporting of value of units of Alternative Investment Funds (AIFs) to Depositories.
The following has been stated:
• SEBI has mandated reporting of the Net Asset Value (NAV) of Alternative Investment Fund (AIF) units to Depositories to enhance transparency and operational efficiency. Under the AIF Regulations, Category I and II AIFs are required to value their investments at least once every six months (extendable to one year with 75% investor approval). At the same time, Category III AIFs shall compute and disclose NAV at least quarterly (for closed-ended funds) or monthly (for open-ended funds). Further, AIF units are required to be issued in dematerialized form.
• Accordingly, AIFs, through their Registrars and Transfer Agents (RTAs), shall upload the latest available NAV for each ISIN to the depository system before May 1, 2026, or within 30 days from the valuation date, whichever is later. The valuation date will be the date of the valuation report (if done by an independent valuer) or the date on which the valuation is recorded internally (if done by an internal valuer). The AIF manager is responsible for ensuring the timely and accurate uploading of data.
• Depositories are required to build the necessary infrastructure for NAV uploads, display a prescribed disclaimer regarding valuation methodology, amend relevant bye-laws, and inform participants. Trustees or sponsors shall ensure that compliance with these provisions is reflected in the Compliance Test Report.
• The circular comes into force with immediate effect.
[Notification no. - HO/19/34/11(8)2025-AFD-POD1/I/4335/2026]
