Securities and Exchange Board of India (Alternative Investment Funds) (Third Amendment) Regulations, 2026

7925 GI/2026 (1)REGS. No. D. L.-33004/99
EXTRAORDINARY
PART III—Section 4
PUBLISHED BY AUTHORITY
SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 9th October, 2026
SECURITIES AND EXCHANGE BOARD OF INDIA (ALTERNATIVE INVESTMENT FUNDS) (THIRD AMENDMENT) REGULATIONS, 2026 No. SEBI/LAD-NRO/GN/2026/326.— In exercise of the powers conferred by Section 30(1) read with Section 11(1), Section 11(2)(ba), Section 11(2)(c), Section12(1) and Section12(1B) of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, namely, –

1. These Regulations may be called the Securities and Exchange Board of India (Alternative Investment Funds) (Third Amendment) Regulations, 2026.
2. They shall come into force on the date of their publication in the Official Gazette.
3. In the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012, –
   I. In regulation 2(1)(ab),
   i. the word and symbol “who,” appearing after the words “certificate of accreditation by an accreditation agency” shall be omitted;
   ii. after the words “certificate of accreditation by an accreditation agency”, the words and symbols “or who is accredited by a specified SEBI registered/regulated entity as an accredited investor, as per the following eligibility conditions, in a manner as may be specified by the Board from time to time, -” shall be inserted;
   iii. in sub-clause (i), in item (C), the symbol “.” shall be substituted with the word and symbol “; or”;
   iv. in sub-clause (i), after item (C), a new item (D) shall be inserted, namely, -
   “(D) securities market exposure of at least five crore rupees, as specified by the Board.”;
   v. sub-clause (ii) shall be substituted with the following, namely, -
   “(ii) in case of a limited liability partnership set up under the Limited Liability Partnership Act, 2008, has net worth of at least fifty crore rupees or securities market exposure of at least twenty crore rupees, as specified by the Board, or each partner independently meets the eligibility criteria for accreditation under these regulations;”;
   vi. the existing sub-clauses (iii) and (iv) shall be renumbered as (iv) and (v) respectively;
   vii. after sub-clause (ii), a new sub-clause (iii) shall be inserted, namely, -
   “(iii) in case of a body corporate other than a limited liability partnership, has net worth of at least fifty crore rupees or securities market exposure of at least twenty crore rupees, as specified by the Board;”
   viii. in sub-clause (iv) so renumbered, after the words “net worth of at least fifty crore rupees”, the words “or securities market exposure of at least twenty crore rupees, as specified by the Board” shall be inserted;
   ix. in sub-clause (v) so renumbered, after the words “eligibility criteria for accreditation”, the words “under these regulations” shall be inserted;
   x. in the proviso, the words and symbol “Category I foreign portfolio investors, sovereign wealth funds and” shall be omitted;
   xi. in the proviso, after the words “multilateral agencies” the words, symbols and numbers “, Persons Resident Outside India as defined under Foreign Exchange Management Act, 1999” shall be inserted;
   xii. in the proviso, the words “and may not be required to obtain a certificate of accreditation” shall be omitted.
   II. regulation 25 shall be substituted with the following, namely, -
   “25. (1) All claims, differences or disputes between investors and the Alternative Investment Fund or the Manager arising out of or in relation to the activities of the Alternative Investment Fund or the Manager in the securities market shall be submitted to a dispute resolution mechanism that includes mediation and/or conciliation and/or arbitration, in accordance with the procedure specified by the Board. (2) Where claims, differences or disputes between investors and the Alternative Investment Fund or the Manager arise under sub-regulation (1), then any loss or damage or expenses incurred by the Manager or officers of the Manager, including those in relation to resolution of claims or disputes of investors, shall not be met out of property of the Alternative Investment Fund.” AMIT PRADHAN, Executive Director [ADVT.-III/4/Exty./389/2026-27] Note:
   The Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 was published in the Gazette of India on May 21, 2012 vide notification No. SEBI/LAD-NRO/GN/2012-13/04/11262 and was last amended by the Securities and Exchange Board of India (Alternative Investment Funds) (Second Amendment) Regulations, 2026 vide No. SEBI/LAD-NRO/GN/2026/313. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.