SEBI revises AIF master circular, limits co-investing to accredited investors
Securities and Exchange Board of India (SEBI) just rolled out revised master circular for alternative investment funds (AIFs) on June 3, 2026, shaking up how these funds operate in India.
The new rules mainly change who can co-invest (now limited to accredited investors), set tighter limits on foreign investments, and make the onboarding process stricter.
If you're into finance or investing, this is one of those moments that could impact how money moves in and out of AIFs.
Conditional AIF overseas cap $1.5 billion
AIF overseas investments in offshore venture capital undertakings are now capped at $1.5 billion across the industry, but only if funds meet specific eligibility criteria.
Onboarding gets a security upgrade with mandatory anti-money laundering checks and compliance with global regulations before accepting any foreign money.
For Category III AIFs, there are tougher rules around leverage and risk management, plus more transparency for investors.
SEBI says these changes should make things simpler and safer as India's AIF scene keeps growing fast.