Certain Amendments To AIF Regulations

On November 18, 2025, SEBI notified amendments ('Amendments') to the SEBI (Alternative Investment Fund) Regulations, 2012 ('AIF Regulations'). The Amendments introduce: (i) a new regulatory framework for Alternative Investment Fund ('AIF') schemes that consist exclusively of Accredited Investors ('AI'), ('AI-Only Funds'); (ii) additional relaxations for Large Value Funds for AIs ('LVFs'); and (iii) certain other general modifications. Key aspects of these Amendments are summarised below.

Key provisions introduced/existing provisions amended with respect to AI-Only Funds:

1. Scope of AI-Only Funds: AI-Only Funds can be launched as a new AIF or new scheme of an existing AIF. Further, existing AIFs can transition to an AI-Only Fund or a LVF subject to satisfaction of conditions. SEBI is yet to prescribe these conditions;