SEBI Relaxes the Timeline for Disclosure of Allocation Methodology by Angel Funds
Pursuant to amendments to the (Alternative Investment Funds) Regulations, 2025 notified on September 8, 2025 introducing a revamped regulatory framework governing angel funds, the Securities and Exchange Board of India (SEBI) issued a detailed circular dated September 10, 2025 (Angel Funds Circular) setting forth the operational modalities in respect of the new regulatory framework governing angel funds (which can be accessed here).
The Angel Funds Circular mandated existing angel funds to disclose a clear, pre-defined methodology in their private placement memoranda (PPMs) for allocation of investments among angel investors who provide approval for investments. Allocation of investments made post October 15, 2025, was required to be undertaken by angel funds in accordance with the methodology disclosed in the PPM. Following industry representations seeking more time to operationalise these changes (including revising PPMs and investor communications and recalibrating internal processes), SEBI vide its circular dated October 15, 2025, has extended the compliance timeline to January 31, 2026.
Published On:
- January 27, 2026
Contributors:
- Dhruv Chatterjee
- Prachi Yadav
- Kshitij Shandilya