SEBI extends deadline for angel funds to disclose investment allocation methodology

Markets regulator SEBI on Wednesday extended the deadline for existing angel funds to disclose their investment allocation methodology under the revised regulatory framework for the segment.

The Securities and Exchange Board of India (SEBI), in a circular, said that angel funds will now have time until January 31, 2026, to define and disclose the methodology used to allocate investments among participating investors in their Private Placement Memorandums (PPMs).

The extension provides additional compliance time beyond the earlier deadline of October 15, 2025.

“Based on representations from the AIF industry requesting additional time to meet this requirement, it has been decided to extend the said timeline to January 31, 2026, for ease of compliance,” SEBI said.

Accordingly, any investment made by existing angel funds after January 31, 2026, should be in accordance with the allocation methodology disclosed in their PPMs, the regulator added.

Apart from the timeline extension, all other provisions of the September 10, 2025, circular will remain unchanged, SEBI clarified.

In September, the regulatory framework for angel funds was revised under AIF (alternative investment fund) norms.

The revised framework seeks to streamline operations, enhance transparency, and strengthen governance within India’s early-stage investment ecosystem.

As part of the revised framework to streamline fundraising, investment and compliance norms under the alternative investment funds rules, angel funds can raise capital only from accredited investors.