Sebi Eases AIF Compliance Reporting Framework

New Delhi, Mar 4 (PTI) Markets regulator Sebi on Wednesday eased the compliance reporting framework for Alternative Investment Funds (AIFs) by introducing an annual reporting system and reducing the scope of quarterly filings, in a bid to improve ease of doing business.

Under the revised system, AIFs will now submit a comprehensive Annual Activity Report at the end of every financial year. This report is required to be filed online through the Sebi Intermediary (SI) Portal within 30 calendar days from the end of March each year, Sebi said in its circular.

The first annual report will be for the financial year ending March 2026, and it must be submitted by May 31, 2026.

In addition, AIFs will also submit a limited quarterly activity report in a revised format within 15 calendar days after the end of each quarter, Sebi said.

However, no separate quarterly report will be required for the March quarter, since the annual report will already include those details. The first quarterly report under the new system will be for the quarter ending June 2026, it added.

The revised reporting formats will be uploaded on the IVCA website within three days of the circular's issuance, and IVCA will assist AIFs in understanding the new requirements and resolving any reporting-related issues.

Earlier, AIFs were required to submit detailed activity reports to Sebi every quarter within 15 days of the end of the quarter through formats hosted on the website of the Indian Venture and Alternate Capital Association (IVCA).

The move follows a review of the reporting framework and recommendations from a Sebi working group aimed at easing compliance requirements.

In a separate circular, Sebi came out with revised operational, governance and compliance requirements for custodians in order to strengthen oversight while also improving ease of doing business.

The regulator said the list of financial services activities that custodians can undertake will be specified by the Custodians and DDPs Standards Setting Forum (CDSSF) in consultation with Sebi.

Further, custodians that are not banks, or subsidiaries, associates or joint ventures of banks, would be required to conduct Sebi-regulated and non-Sebi-regulated financial services through separate strategic business units (SBUs), maintain separate accounts for these units and meet net worth requirements independently of such businesses.