SEBI Issues Updated Master Circular for Alternative Investment Funds

Master Circular no. HO/19/34/11(6)2025-AFD-POD1/I/12928/2026; Dated: 03.06.2026

The Securities and Exchange Board of India (SEBI) has issued an updated Master Circular for Alternative Investment Funds (AIFs) to consolidate the regulatory framework applicable to AIFs into a single reference document.

The updated circular incorporates regulatory requirements contained in various circulars and directions issued up to 31 May 2026, thereby providing stakeholders with a comprehensive and easily accessible compliance framework.

1. Consolidation of Regulatory Requirements

The Master Circular has been issued to enable AIF stakeholders to access all applicable regulatory requirements in one place.

It consolidates and harmonises various circulars, guidelines and directions issued by SEBI over time, reducing the need to refer to multiple regulatory documents.

2. Circulars Issued Till 31 May 2026 Incorporated

The updated Master Circular incorporates the provisions of all relevant SEBI circulars issued up to 31 May 2026 relating to Alternative Investment Funds.

As a result, AIFs, investment managers, sponsors, trustees, custodians and other stakeholders can refer to a single consolidated document for regulatory compliance purposes.

3. Supersedes the earlier Master Circular of May 7, 2024

The newly issued Master Circular supersedes the earlier:

Master Circular for Alternative Investment Funds dated 07 May 2024

Accordingly, the updated Master Circular shall serve as the primary consolidated reference document for the AIF regulatory framework.

4. Incorporation of Subsequent Guidelines and Directions

Following the issuance of the Master Circular dated 07 May 2024, SEBI had issued various:

Circulars;
Guidelines;
Directions; and
Regulatory communications

applicable to Alternative Investment Funds.

These subsequent regulatory requirements have now been incorporated into the updated Master Circular to ensure completeness and regulatory consistency.

5. Benefits for AIF Stakeholders

The consolidated framework is expected to:

Improve ease of compliance;
Reduce regulatory fragmentation;
Provide greater clarity on applicable requirements;
Facilitate efficient implementation of SEBI regulations; and
Serve as a single-point reference for market participants.

6. Applicability

The updated Master Circular applies to:

Alternative Investment Funds (AIFs);
Investment Managers;
Sponsors;
Trustees;
Custodians; and
Other entities governed by the SEBI AIF framework.

Stakeholders are required to comply with the provisions consolidated in the Master Circular.

7. Objective of the Master Circular

The primary objective of the updated Master Circular is to streamline regulatory compliance by consolidating all applicable instructions, circulars and directions relating to Alternative Investment Funds into a single document.

By providing a unified regulatory reference, SEBI aims to enhance transparency, improve regulatory certainty and facilitate smoother compliance across the Alternative Investment Fund ecosystem.