The Securities and Exchange Board of India (SEBI) has directed Alternative Investment Funds (AIFs) to report the net asset value (NAV) of their units to depositories by May 01, 2026. The instruction was issued through a circular dated February 6, 2026.
The rule requires the latest NAV for each International Securities Identification Number (ISIN) of AIF units to be available within the depository system. The value must be calculated by an independent valuer and uploaded through registrars and transfer agents (RTAs).
AIFs will need to upload the NAV by May 01, 2026, or within 30 days of the valuation date of the investment portfolio, whichever is later. The reporting responsibility will rest with the AIF manager.
The circular has taken effect immediately, and AIFs, depositories, and RTAs are expected to put the required systems in place within the given timeline.
SEBI has clarified how the valuation date will be determined for reporting purposes. When an independent valuer is appointed, the valuation date will be the date mentioned in the valuation report.
If the valuation is carried out internally, the date recorded in the fund’s internal documents will be treated as the valuation date. This aligns the reporting process with existing valuation practices under AIF regulations.
Category I and Category II AIFs are required to value their portfolios at least once every six months through an independent valuer. This interval may be extended to one year with the approval of at least 75% of investors by value.
Category III AIFs must ensure that NAV calculations are carried out independently of the fund management function. They are required to disclose NAV at least quarterly for close-ended funds and monthly for open-ended funds.
Depositories have been asked to create systems that allow RTAs to upload NAV data and display it along with a standard disclaimer on valuation methods. They must also update their rules and inform participants about the new requirement.
The Compliance Test Report prepared by the AIF manager will now need to confirm adherence to the NAV reporting rules.
Read More: SEBI Proposes Easier Exit Rules For AIFs Stuck In Tax And Legal Disputes!
The directive sets a uniform timeline and assigns reporting responsibility to AIF managers ahead of the May 2026 deadline.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal 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.
Mutual Funds Investments are subject to market risks, read all the related documents carefully before investing.
Published on: Feb 9, 2026, 12:44 PM IST
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