SEBI’s updated AIF Master Circular (5 November 2026) incorporates the new accredited investor framework, GARUDA compliance mechanism, and enhanced fund winding-up guidelines.
AIF Regulatory Overhaul: Master Circular Updated
SEBI has updated its AIF Master Circular effective 5 November 2026, integrating comprehensive reforms including the revised accredited investor framework, implementation of the GARUDA monitoring mechanism, and clarified guidelines for fund winding-up. The update consolidates recent regulatory changes into a unified supervisory framework for AIFs.
The inclusion of GARUDA—Governance and Risk Monitoring Dashboard—enables real-time reporting and risk profiling by fund managers. Additionally, the winding-up provisions now prescribe standardized timelines, investor notification requirements, and valuation norms for asset liquidation, promoting transparency in fund closures.
Legal teams advising AIFs must revise operational manuals, governance structures, and compliance calendars. The update reflects SEBI’s shift towards proactive surveillance and structured exit mechanisms in the alternative investment space.