SEBI amended regulations requiring AIFs to hold investments in ...
Alternative Investment Funds Must Hold New Investments in Demat Form Starting July 2025 Under SEBI's Latest Amendment
February 17, 2025
Circulars SEBI
SEBI amended regulations requiring AIFs to hold investments in dematerialized form. Effective July 1, 2025, all new AIF investments must be dematerialized. Pre-July 2025 investments are exempt except where investee companies are legally mandated for dematerialization or where AIFs exercise control. Such pre-July investments must be dematerialized by October 31, 2025. Exemptions apply to AIF schemes ending by October 31, 2025, or those in extended tenure as of February 14, 2025. AIF managers must include compliance reporting in their Compliance Test Report. The circular exercises powers under SEBI Act 1992 and AIF Regulations 2012 for investor protection and market regulation.
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