The Securities and Exchange Board of India (SEBI), on March 23, 2026, in its 213th Board Meeting held in Mumbai, approved multiple regulatory reforms aimed at enhancing ease of doing business, improving market efficiency, and encouraging broader investor participation across segments of the securities market.
The Board approved key amendments to the SEBI (Alternative Investment Funds) Regulations, 2012, including allowing AIFs to retain liquidation proceeds beyond fund tenure under specified conditions and introducing the concept of “inoperative funds” with reduced compliance burden. Additionally, Foreign Portfolio Investors (FPIs) will be permitted net settlement of funds in the cash market to reduce funding costs and improve operational efficiency. The Board also reduced the minimum investment threshold in Social Impact Funds from ₹2 lakh to ₹1,000, thereby promoting retail participation in the Social Stock Exchange ecosystem.
Further, SEBI approved several measures for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), including flexibility in holding SPVs post concession period, expanded investment avenues, and relaxed borrowing norms. Amendments to the “fit and proper person” criteria under the Intermediaries Regulations, 2008 were also cleared to balance regulatory oversight with ease of doing business, including removal of automatic disqualification in certain cases and provision of a fair hearing process.
[PR No. 18/2026]
