Reporting of value of units of Alternative Investment Funds (AIFs) to Depositories  

(February 6, 2026) Under this circular, SEBI has mandated the reporting of Net Asset Value (NAV) of Alternative Investment Fund (AIF) units to depositories. Under the SEBI (Alternative Investment Funds) Regulations, 2012, AIFs are already required to undertake periodic valuation of their investment portfolios- Category I and II AIFs at least once every six months (extendable to one year with 75% investor approval), and Category III AIFs on a quarterly (close-ended) or monthly (open-ended) basis. Further, pursuant to earlier regulatory changes, AIF units are required to be issued in dematerialised form. 

To enhance transparency and leverage depository infrastructure, SEBI has now directed AIFs (through their RTAs) to upload the latest available NAV corresponding to each ISIN in the depository system by May 1, 2026, or within 30 days from the date of valuation, whichever is later. The valuation date is clarified as the date of the valuation report (in case of independent valuers) or the date of internal documentation (in case of internal valuation). The AIF manager is responsible for ensuring timely and accurate uploading. Depositories are required to build necessary infrastructure, display NAV with a prescribed disclaimer, amend their bye-laws if required, and disseminate the circular. Compliance must also be reflected in the AIF’s Compliance Test Report. The circular is effective immediately. 

his circular is significant in light of the earlier mandate requiring AIF units to be held in demat form. While units were dematerialised, NAV information was not uniformly reflected within the depository ecosystem. By mandating NAV reporting at the ISIN level, SEBI integrates valuation data with the demat holding structure, aligning AIF reporting standards more closely with those applicable to mutual funds and other market-linked instruments. 

From an investor perspective, the impact is positive. Investors will be able to view NAV information directly through the depository system, ensuring better visibility and standardized disclosure.