SEBI's Transparency Drive: Regular NAV Updates Proposed for AIFs

SEBI has proposed that Alternative Investment Funds (AIFs) regularly update the net asset value (NAV) of their units in the depository system. This would involve leveraging depository infrastructure and requires AIFs or their Registrar and Transfer Agents to upload NAVs within stipulated timelines based on investment portfolio valuations.

The Securities and Exchange Board of India (SEBI) has announced a proposal to bolster transparency within the Alternative Investment Fund (AIF) sector. The proposal suggests that AIFs should regularly update the net asset value (NAV) of their units in the depository system.

By leveraging existing depository infrastructure, SEBI aims to ensure that AIFs can maintain updated NAVs of investor-issued units. This measure is expected to be based on the valuation of investments, and NAVs are required to be uploaded within 15 days of each valuation.

For current schemes, SEBI mandates that the latest NAVs should be uploaded within 45 days of the circular's issuance. Additionally, the board has opened the floor for public commentary on these proposals through October 9, inviting discussion across Indian and non-Indian investor bases.

(With inputs from agencies.)