CIRCULAR
SEBI/HO/AFD/AFD-POD-1/P/CIR/2025/136 October 15, 2025
To,
All Alternative Investment Funds (AIFs)
Sir/Madam,
Sub: Relaxation in timeline for disclosure of allocation methodology by Angel Funds
1. Securities and Exchange Board of India (Alternative Investment Funds) Regulations,
2012 (“AIF Regulations”) have been amended and notified on September 09, 2025, to
prescribe the revised regulatory framework for Angel Funds.
2. Subsequently, SEBI vide Circular dated September 10, 2025 on ‘Revised regulatory
framework for Angel Funds under AIF Regulations’ stipulated the specific conditions
and modalities with respect to various provisions pertaining to Angel Funds.
3. In terms of para 8.3 of the aforesaid SEBI circular, the following was mandated:
3.1. Existing Angel Funds shall disclose a defined methodology in their PPMs for the
purpose of allocating the investment among angel investors who provide
approval for such investment; and
3.2. Allocation of any investment made by such Angel Funds post October 15, 2025,
shall be in accordance with the methodology disclosed in the PPM.
4. Based on representation 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. Accordingly, allocation of any investment made by existing Angel
Funds post January 31, 2026, shall be in accordance with the defined allocation
methodology disclosed in their PPMs.
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5. All other provisions of the circular dated September 10, 2025 on ‘Revised regulatory
framework for Angel Funds under AIF Regulations’ shall remain unchanged.
6. This circular shall come into force with immediate effect.
7. This circular is issued with the approval of the competent authority and in exercise of
powers conferred under Section 11(1) of the Securities and Exchange Board of India
Act, 1992, read with Regulations 19G(4) and 36 of AIF Regulations, to protect the
interests of investors in securities and to promote the development of, and to regulate
the securities market.
8. The circular is available on SEBI website at www.sebi.gov.in under the categories
"Legal framework - Circulars" and "Info for - Alternative Investment Funds”.
Yours faithfully,
Manish Kumar Jha
Deputy General Manager
Tel no.: +91-22-2644 9219
manishkj@sebi.gov.in
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