SEBI Tightens AIF Disclosure Norms; Mandates ISIN-Level NAV Reporting

India’s capital markets regulator, SEBI, has introduced fresh compliance requirements for Alternative Investment Funds (AIFs), mandating scheme-wise net asset value (NAV) disclosure at the International Securities Identification Number (ISIN) level to depositories.

Under the revised framework, AIF managers must upload NAV data within 30 days. The move is aimed at strengthening transparency, accountability, and investor confidence in the alternative investment ecosystem.

What Has Changed in AIF Disclosure Norms?

Earlier, private market investments often lacked the standardised, timely information flow seen in mutual funds or listed securities. SEBI now requires AIFs to report NAV data scheme-wise at the ISIN level directly to depositories. This means that each scheme’s valuation will be centrally recorded. The data must be reported within a maximum 30-day lag. This will enable investors to independently access updated valuations through depository systems.

Why Does This Matter for Investors?

This step by SEBI aims to reduce dependency on fund managers for periodic performance updates and empowers investors with independent access to data. Quicker and standardised reporting allows investors and advisors to track performance more closely, identify discrepancies early, and strengthen governance practices. This enhances credibility in a segment that has historically been less transparent than public markets.

What Should Investors Know About the New Norms? 

However, it is important to note that while faster NAV reporting improves informational reliability, it does not change the inherent risk profile of AIFs. Alternative investments such as private equity, venture capital, and structured credit remain long-term in nature, relatively illiquid, and subject to valuation complexities. 

Compliance Costs vs Long-Term Credibility

AIF managers may incur incremental compliance costs due to tighter reporting standards. However, these costs are unlikely to materially impact the overall economics of AIF structures.

More importantly, stronger reporting norms signal SEBI’s intent to build robust infrastructure in the alternative investment space. This could boost investor confidence, attract greater institutional participation, and support sustainable long-term sector growth. 

Read more: ABB India Ltd Q3 FY26 Earnings Results Out: Revenue Beats Estimates, Margins Under Pressure.

Conclusion

SEBI’s decision to mandate ISIN-level NAV reporting for AIFs marks a significant step toward improving transparency in India’s private markets.

While the regulation does not reduce investment risk, it enhances clarity, accountability, and governance: three pillars critical for long-term credibility. For an industry that is rapidly expanding and attracting institutional capital, standardised reporting could serve as the foundation for deeper trust and sustained growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.