SEBI Extends Deadline for Angel Funds to Disclose Investment Allocation Methodology

The Securities and Exchange Board of India (SEBI) has extended the deadline for Angel Funds, registered under the Alternative Investment Funds (AIF) Regulations, to comply with disclosure norms related to their investment allocation methodology.

As per a circular issued on Wednesday, the deadline has been pushed from October 15, 2025, to January 31, 2026, providing more time for existing Angel Funds to incorporate the required information in their Private Placement Memorandum (PPM).

Industry Requests Prompt Relaxation

SEBI’s decision follows representations from stakeholders within the AIF industry, who sought additional time to effectively implement the revised framework. The market regulator acknowledged these concerns and cited the extension as a move to ensure ease of compliance.

“Based on representation from the AIF industry requesting additional time to meet this requirement, it has been decided to extend the said timeline to January 31, 2026, for ease of compliance,” SEBI stated in its circular.

Allocation Rules Effective Post-Deadline

Following the extension, any investment made by existing Angel Funds after January 31, 2026, must strictly adhere to the defined and disclosed allocation methodology as stated in their PPMs.

This requirement ensures greater transparency and consistency in how investments are allocated among angel investors who have approved a particular deal.

Also Read: SEBI Chief Urges Stronger Ethical Oversight from Public Interest Directors

Background: New Allocation Norms Introduced in September 2025

The revised framework was first introduced in SEBI’s September 10, 2025, circular, which mandated that Angel Funds must adopt a clear and transparent methodology for allocating investments among participating investors. Previously, this requirement was to take effect from October 15, 2025, but with the extension, January 31, 2026, is now the effective date for compliance.

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