SEBI requires AIFs to disclose unit valuations through depositories

In a recently issued circular, the Securities and Exchange Board of India (SEBI) has directed Alternative Investment Funds (AIFs) to report unit valuation data to depositories.

The initiative is aimed at enhancing transparency and improving operational efficiency across the alternative investment ecosystem.

By leveraging the existing depository framework, the move is expected to provide investors with clearer and more consistent visibility into the value of their investments.

Under the revised framework, AIFs are required to upload the most recent Net Asset Value (NAV) for each International Securities Identification Number (ISIN) to the depository platform through their Registrars and Transfer Agents (RTAs). This must be done by 01 May 2026, or within 30 days of the portfolio valuation date, whichever is later.

 

Where valuations are carried out by independent valuers, the valuation report date will be treated as the relevant reference date. In cases where internal valuation is adopted, the date on which the valuation is formally recorded in internal systems will apply.

Accountability for the accuracy and timeliness of these disclosures lies with the AIF manager.

In addition, trustees or sponsors are required to confirm adherence to these requirements in their Compliance Test Reports.

Depositories, meanwhile, are mandated to develop the required systems and display a standard disclaimer alongside the NAV, clarifying that the reported values are derived using the valuation approaches and accounting policies followed by the respective AIFs.

Powered by Capital Market - Live News