Regulatory Alerts2025-09-10
Revised regulatory framework for Angel Funds under AIF Regulations
The Securities and Exchange Board of India issued this circular to amend the Alternative Investment Funds Regulations, establishing a revised regulatory framework for Angel Funds to enhance operational clarity and risk reduction. The rules mandate that Angel Funds raise capital exclusively from Accredited Investors, require a first close within twelve months, and impose specific limits on follow-on investments and lock-in periods. Additionally, the document clarifies pro-rata allocation methodologies, reclassifies existing funds as Category I AIFs, and introduces new benchmarking and audit obligations effective from the 2025-26 financial year.
Share