In a major structural overhaul aimed at promoting ease of doing business for private pool managers, the Securities and Exchange Board of India (SEBI) has notified the SEBI (Alternative Investment Funds) (Second Amendment) Regulations, 2026.

Published in the Gazette of India vide Notification No. SEBI/LAD-NRO/GN/2026/313, the amendments introduce critical procedural relaxations for Alternative Investment Funds (AIFs). The landmark changes include a complete fee waiver on the launch of an AIF’s very first investment scheme and a massive reduction in the timeline for filing scheme documents.

Key Regulatory Shifts: Before vs. After

The amendment strategically reshapes Regulation 12 and Regulation 19D of the principal 2012 AIF regulations:

Area of Regulation	Old Provisions (AIF Rules, 2012)	New Amended Provisions (July 2026)
First-Scheme Launch	Standard scheme registration fees applied to all launches.	No scheme fee for launching the first scheme of an AIF.
PPM Filing Timeline	Filing required 30 days prior to the launch of the scheme.	Reduced to 10 working days prior to the launch.
Accredited Investor Exemptions	Exemptions carried out under “Large Value Fund for Accredited Investors.”	Exemptions under Reg 12(2), (3), and (3A) now explicitly apply to “Accredited Investors Only Funds”.
Merchant Banker Mandate	Under Reg 19D(4) & (5), certain filings/compliance required a mandatory merchant banker route.	Requirement to file “through a merchant banker” omitted; Reg 19D(5) deleted entirely.

Direct Impact on Fund Managers

By slashing the pre-launch Private Placement Memorandum (PPM) filing window from 30 calendar days to just 10 working days, SEBI has drastically improved time-to-market speeds for fund managers looking to capitalize on immediate market opportunities.

The removal of the mandatory Merchant Banker route for social venture filings (Regulation 19D) eliminates double layers of administrative friction. It places direct operational accountability back on the Fund Managers and Sponsors to comply with SEBI’s review feedback under the newly inserted Regulation 12(3A).

Conclusion

This amendment is a big support for India’s asset management sector. By waiving the initial scheme fee and simplifying the compliance architecture for “Accredited Investors Only Funds”, SEBI is sending a clear signal: India is committed to reducing entry barriers for institutional capital and expediting fund launches.

Frequently Asked Questions (FAQs)

When do these new SEBI AIF Amendment Rules come into force?

They come into force immediately on the date of their official publication in the Gazette of India (July 14, 2026).

Does the fee waiver apply to subsequent schemes launched by the same AIF?

No. The amendment explicitly states that the exemption from paying scheme registration fees applies only to the launch of the very first scheme by an Alternative Investment Fund. Subsequent schemes will attract standard regulatory fees.

How do these changes impact “Accredited Investors Only Funds”?

They enjoy significant fast-tracking. Under the updated provisons, the requirements of filing detailed documents 10 working days prior, SEBI’s feedback loops (sub-regulation 3), and mandatory compliance with those comments (sub-regulation 3A) do not apply to Accredited Investors Only Funds.

Author Bio

Editorial Team

Setindiabiz Editorial Team is a multidisciplinary collective of Chartered Accountants, Company Secretaries, and Advocates offering authoritative insights on India’s regulatory and business landscape. With decades of experience in compliance, taxation, and advisory, they empower entrepreneurs and enterprises to make informed decisions.

SEBI Eases AIF Regulations: Waives First-Scheme Fee, Slashes PPM Filing Timelines