SEBI tightens AIF rules

The Securities and Exchange Board of India told asset‑management companies and their subsidiaries to treat each alternative investment fund scheme as a "broad‑based" pooled asset. (sebi.gov.in) SEBI said each alternative investment fund scheme must have at least 20 investors and no single investor may hold more than 25 percent of the scheme's corpus. (sebi.gov.in) The regulator said compliance should be assessed at the level of individual schemes, and that both master and feeder funds must independently satisfy the broad‑based tests. (sebi.gov.in) SEBI issued the clarification as an interpretative informal‑guidance letter dated April 9, 2026, in response to a request from UTI Alternatives Private Limited. (sebi.gov.in) The guidance makes explicit that asset managers providing management or advisory services to AIFs face tighter investor‑concentration checks and documentation expectations. (moneycontrol.com) That letter cites Regulation 21(b) of the SEBI (Mutual Funds) Regulations, 2026 and the definition of alternative investment funds under the AIF Regulations to explain why AIFs qualify as pooled assets. (sebi.gov.in) SEBI had proposed easing some broad‑basing restrictions for asset‑management companies in July 2025, but the April 9 interpretative letter applies existing broad‑based criteria to AIF schemes managed or advised by AMCs or their subsidiaries. (thehindu.com) Fund managers and trustees now face an immediate compliance question: restructure schemes, reduce single‑investor stakes, or seek further guidance from SEBI after the April 9, 2026 letter. (sebi.gov.in)