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Informist, Friday, Sept. 19, 2025

 

NEW DELHI – The Securities and Exchange Board of India Friday released a draft circular setting out a new procedure for reporting the value of units in alternative investment funds to depositories. The capital markets regulator sought feedback on the draft by Oct. 9. A depository of an alternative investment fund is an independent third party that holds the fund's assets safely.

 

All funds shall upload the net asset value of each security of all its units to the depository system within 15 days of valuation of the investment portfolio, the proposed norms said. For existing schemes, alternative investment funds need to upload the latest net asset value of each investments to the depository system within 45 days of the date that the circular goes live. 

 

Category I and II AIFs are required to get their investments valued by an independent valuer every six months. Category III funds can calculate their own net asset value provided that calculation is independent from the fund management function. These valuations have to be periodically then declared to investors.

 

Depositories have to build the necessary infrastructure for the uploading and display of the net asset value, according to SEBI's proposal. They must also make necessary amendments in their operational documents to implement the provisions, and bring the circular's guidelines to the notice of members and participants. 

 

"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," the draft said. The regulator mooted that the circular would be effective immediately after it was finalised.  End

 

Reported by Aaryan Khanna

Edited by Deepshikha Bhardwaj

 

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