SEBI Notifies SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2026

The Securities and Exchange Board of India (“SEBI”), through notification dated 10.07.2026, has notified the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2026 (“AIF Amendment Regulations”),¹ further amending the SEBI (Alternative Investment Funds) Regulations, 2012. The AIF Amendment Regulations have come into force on the date of their publication in the Official Gazette, i.e., 14.07.2026.

The key amendments introduced under the AIF Amendment Regulations are as follows:

1. The AIF Amendment Regulations exempt Alternative Investment Funds (“AIFs”) from payment of scheme fees for the launch of their first scheme. For subsequent schemes, the prescribed fees under the Second Schedule will continue to apply.
2. The timeline for filing scheme documents with SEBI has been reduced from 30 (thirty) days to 10 (ten) working days. Further, instead of filing documents along with the fees specified in the Second Schedule, AIFs are now required to submit only such documents as may be specified by SEBI.
3. Merchant banker or manager responsible for compliance with SEBI comments: The AIF Amendment Regulations clarify that, after filing the prescribed documents, SEBI may communicate its comments (if any) to the merchant banker or the manager. The AIF Amendment Regulations further require merchant banker or manager to ensure compliance with such comments.
4. The exemption previously available to large value funds for accredited investors has been revised. The AIF Amendment Regulations now provide that regulations relating to SEBI comments and compliance therewith under Regulation 12 (2), (3) and (3A) shall not apply to Accredited Investors only funds.
5. The AIF Amendment Regulations omit Regulation 19D(4), which had required an angel fund to file its placement memorandum through a merchant banker, and hence an angel fund may now file it directly. Regulation 19D(5) has also been omitted, which had required the merchant banker to ensure that SEBI's comments were incorporated in the placement memorandum before circulation to investors.

Footnote

1. SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2026

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