Summary:
The Securities and Exchange Board of India (SEBI) has extended the compliance deadline for Angel Funds under the Alternative Investment Funds (AIF) Regulations to January 31, 2026. The extension allows Angel Funds more time to incorporate investment allocation methodology disclosures in their Private Placement Memorandum (PPM), ensuring transparency and consistency for investors.
Deadline Extension Details
SEBI issued a circular on Wednesday, pushing the original October 15, 2025 deadline to January 31, 2026, for existing Angel Funds to comply with new disclosure norms. This move provides additional time for fund managers to implement the updated framework effectively.
- Original Deadline: October 15, 2025
- Extended Deadline: January 31, 2026
- Applicability: Existing Angel Funds under SEBI’s AIF Regulations
- Requirement: Incorporation of investment allocation methodology in Private Placement Memorandum (PPM)
Reason for Extension
The extension comes in response to requests from industry stakeholders seeking extra time to adopt the new norms efficiently. SEBI acknowledged these concerns, stating the move is aimed at ease of compliance while maintaining regulatory standards.
“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,” SEBI noted in its circular.
Implications for Angel Funds and Investors
Post January 31, 2026, any new investments by Angel Funds must strictly follow the disclosed allocation methodology mentioned in their PPMs. This ensures:
- Greater transparency in how investment opportunities are allocated among angel investors.
- Consistent application of allocation norms across all deals approved by fund participants.
- Enhanced investor confidence in the Angel Fund ecosystem.
Background: New Allocation Norms
The revised framework was introduced by SEBI on September 10, 2025, mandating that Angel Funds adopt a clear and transparent methodology for distributing investment opportunities among investors. Prior to this, no structured allocation methodology was mandated, leaving scope for discrepancies in how deals were assigned to participating investors.
The extension of the deadline to January 31, 2026, provides fund managers additional time to update their PPMs and align internal processes with the new compliance requirements.
Outlook
With this extension, SEBI aims to balance regulatory rigor with practical implementation timelines. Angel Funds now have adequate time to align with the revised norms, and investors can look forward to greater transparency and consistency in allocation of deals going forward.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.