Ministry : Ministry of Finance (SEBI)

Reporting of value of units of Alternative Investment Funds _AIFs_ to Depositori

Subject : ministry of finance

Reporting of Value of Units of Alternative Investment Funds (AIFs) to Depositories

This SEBI circular mandates the systematic uploading of Net Asset Values (NAVs) of AIF units into depository systems, marking a significant step toward enhancing transparency, operational efficiency, and investor protection in the alternative investment ecosystem.

Key Points

• AIFs must ensure that the latest available NAV for each ISIN of their units is uploaded to the depository system by their Registrar and Transfer Agents (RTAs) — no later than May 01, 2026, or within 30 days of the valuation date, whichever is later.
• Valuation dates are defined as either the date of the independent valuer’s report (for Category I and II AIFs) or the date documented in internal records (for Category III AIFs or funds using internal valuers).
• The AIF manager is held responsible for the timely and accurate uploading of NAV, while depositories must develop the necessary infrastructure, display a prescribed disclaimer alongside NAV data, and update their bylaws accordingly.
• Category III AIFs are specifically required to calculate NAV independently from fund management and disclose it at least quarterly for close-ended and monthly for open-ended funds.
• Compliance with this circular must be included in the ‘Compliance Test Report’ under Chapter 15 of the Master Circular for AIFs, overseen by the trustee or sponsor.
• The circular draws authority from the SEBI Act, 1992 and AIF Regulations 2012 (Regulations 10, 23, and 36) and supersedes earlier guidance subsumed into the Master Circular as of May 2024.

Mandating NAV Transparency in AIFs via Depository Integration

This circular institutionalizes the integration of AIFs into the electronic depository framework by mandating regular NAV disclosures, thereby aligning alternative investment vehicles with broader capital market transparency standards. By requiring NAV uploads through RTAs and imposing accountability on managers and depositories alike, SEBI strengthens investor access to real-time valuation data while reducing information asymmetry. The move reflects a broader regulatory push toward digitization, standardization, and operational robustness across all market segments—including previously less-transparent AIFs—reinforcing investor trust and market integrity in the alternative investment space.