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 1, 2026. The requirement was announced through a circular issued on February 6, 2026, and aims to enhance transparency and standardisation in AIF disclosures.

Mandatory Reporting of Independent NAVs

Under the new guidelines, AIFs must ensure that the latest NAV for each International Securities Identification Number (ISIN) of their units is made available within the depository system. The NAV must be determined by an independent valuer and uploaded through registrars and transfer agents (RTAs).

The responsibility for timely and accurate reporting will rest with the AIF manager, SEBI said.

Reporting Timeline and Applicability

AIFs are required to upload the NAV by May 1, 2026, or within 30 days from the valuation date of the investment portfolio, whichever is later. The circular has come into effect immediately, and SEBI has asked AIFs, depositories and RTAs to put the necessary systems and processes in place within the stipulated timeline.

Clarification on Valuation Date

SEBI has clarified how the valuation date should be determined for reporting purposes. Where an independent valuer is appointed, the valuation date will be the date specified in the valuation report.

In cases where valuation is carried out internally, the valuation date will be the date recorded in the AIF’s internal documents, ensuring consistency with existing valuation practices under the AIF regulations.

Valuation Frequency Across AIF Categories

Category I and Category II AIFs are required to conduct portfolio valuation through an independent valuer at least once every six months. This frequency may be extended to one year if at least 75% of investors by value provide their consent.

Category III AIFs must ensure that NAV calculations are performed independently of the fund management function. These funds are required to disclose NAVs at least quarterly for close-ended schemes and monthly for open-ended schemes.

Role of Depositories and Compliance Oversight

SEBI has instructed depositories to create systems that allow RTAs to upload NAV data and display it along with a standard disclaimer explaining the valuation methodology. Depositories must also update their rules and inform all participants about the new reporting framework.

Additionally, the Compliance Test Report prepared by AIF managers will now be required to explicitly confirm compliance with the NAV reporting requirements.

Summary

SEBI has mandated that AIFs report independently valued NAVs to depositories by May 1, 2026, or within 30 days of the valuation date. The move is aimed at improving transparency and standardisation in AIF disclosures, with clear timelines, defined valuation dates, and specific responsibilities for AIF managers, depositories and RTAs across all AIF categories.

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