- Securities and Exchange Board of India Circular dated 4 March 2026 – Revised Regulatory Reporting Framework for AIFs
The Securities and Exchange Board of India (“SEBI”) has issued a circular on 4 March 2026 introducing a revised regulatory reporting framework for Alternative Investment Funds (AIFs). The objective of the circular is to enhance the quality, consistency, and usefulness of regulatory disclosures while simultaneously rationalising the compliance burden on AIF managers.
Under the earlier regulatory regime, AIFs were required to submit extensive quarterly reports to SEBI covering a wide range of operational and financial information such as investor composition, leverage, investments made during the quarter, portfolio concentration, and other fund-level disclosures. SEBI observed that the existing framework often resulted in large volumes of fragmented data, which made regulatory analysis more complex and created operational inefficiencies for both the regulator and the reporting entities.
In order to address these concerns, SEBI has introduced a restructured reporting mechanism consisting of two distinct components.
First, AIFs will now be required to submit a detailed Annual Activity Report (AAR). This report will provide a comprehensive overview of the fund’s activities during the relevant financial year. The report is expected to include information relating to the fund’s investment strategy, sectoral allocation of investments, investor composition, fund performance, valuation practices, risk management measures, and compliance with applicable regulatory requirements.
Second, AIFs will continue to submit quarterly activity reports, but these reports will be simplified and limited in scope compared to the earlier framework. The quarterly filings will primarily contain essential information necessary for ongoing regulatory monitoring rather than extensive operational disclosures.
SEBI has clarified that the first Annual Activity Report under the revised framework will be required to be submitted by 31 May 2026 for the financial year 2025–26. The revised reporting formats and submission procedures are expected to be implemented through SEBI’s existing reporting platforms.
From a practical standpoint, AIF managers, investment managers, and compliance teams will need to review the revised reporting requirements carefully and update their internal compliance processes, data management systems, and investor reporting frameworks to align with the new regulatory structure. The circular reflects SEBI’s broader effort to improve regulatory oversight of the rapidly expanding AIF ecosystem in India while promoting efficiency and standardisation in regulatory filings.
- Securities and Exchange Board of India Circular dated 11 March 2026 – Relaxation in Certification Requirements for Research Services Personnel
In a separate regulatory development, the Securities and Exchange Board of India issued a circular dated 11 March 2026 introducing relaxations in certification requirements applicable to certain personnel associated with research services. The circular forms part of SEBI’s ongoing ease of doing business initiatives aimed at reducing unnecessary regulatory compliance while maintaining adequate investor protection standards.
Under the existing regulatory framework governing research analysts and research services, individuals associated with such services were generally required to obtain the NISM Series-XV Research Analyst Certification. This certification is designed primarily for professionals who are directly engaged in preparing, authoring, and publishing research reports or investment recommendations relating to securities listed or proposed to be listed.
SEBI recognised that within brokerage houses, research entities, and financial intermediaries, a large number of personnel interact with clients in relation to research products without actually performing research functions. These personnel typically include sales staff, relationship managers, distribution personnel, and other support staff who facilitate communication between research teams and investors but do not participate in the preparation of research reports or formulation of investment views.
In order to address this distinction, SEBI has now clarified that persons associated with research services who are not directly engaged in research activities will not be required to obtain the Series-XV Research Analyst certification. Instead, such personnel may comply with a simplified certification requirement through the NISM Series-XXV-A certification, which focuses on basic regulatory awareness, investor protection principles, and compliance obligations relevant to client-facing roles.
This relaxation is expected to reduce compliance costs and certification requirements for intermediaries while ensuring that personnel interacting with investors possess an appropriate level of regulatory knowledge. Entities providing research services will nevertheless be required to clearly identify the roles and responsibilities of their personnel and ensure that individuals directly involved in research preparation continue to meet the full certification and qualification requirements prescribed under the applicable SEBI regulations.
Overall, the circular reflects SEBI’s attempt to balance regulatory oversight with operational practicality by distinguishing between core research functions and support roles within financial intermediaries.
