The Securities and Exchange Board of India (SEBI) has issued a draft circular proposing mandatory reporting of net asset value (NAV) of units of Alternative Investment Funds (AIFs) to depositories. The move aims to enhance transparency and strengthen oversight in the AIF ecosystem.
As per the consultation paper released on September 19, 2025, AIFs and their registrars and transfer agents (RTAs) will be required to upload the NAV of International Securities Identification Numbers (ISINs) for all AIF units in the depository system within 15 days of portfolio valuation. The proposal builds on earlier directions mandating dematerialisation of AIF units.
The draft guidelines clarify that the valuation date will be the date of the external valuer’s report, or the date of internal documentation where internal valuation is undertaken. For existing schemes, AIFs and RTAs will have to upload the latest NAV as on the circular’s issuance date within 45 days.
Depositories have been tasked with creating the required infrastructure, amending bye-laws, and ensuring the NAV is reflected in their systems. They are also expected to disseminate the provisions on their websites.
Trustees or sponsors of AIFs must confirm compliance through the periodic Compliance Test Report prepared by managers, in line with the Master Circular for AIFs.
SEBI has sought public comments on the draft circular by October 9, 2025. Feedback can be submitted through the regulator’s website or by writing to the Alternative Funds Department.
