Securities and Exchange Board of India (SEBI) approves AIF, FPI, InvIT, REIT and governance reforms in 213th board meeting.

Key facts

• The Securities and Exchange Board of India (SEBI) held its 213th board meeting in Mumbai on 23 March 2026.
• SEBI amended AIF Regulations 2012 to allow Alternative Investment Funds (AIFs) with no active fund management to retain residual assets for up to 3 years subject to 75% investor approval.
• SEBI introduced net settlement for Foreign Portfolio Investors (FPIs) in the cash market to cut funding and forex conversion costs.
• SEBI expanded retail access to Social Impact Funds (SIFs) by lowering minimum investment and easing disclosure norms.
• SEBI allowed Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) to invest in greenfield projects, hold multiple SPVs, borrow for capex and refinancing, and undertake maintenance expenses.
• SEBI revised fit-and-proper criteria to bar persons with pending FIRs for economic offences or securities law violations and reduced disqualification period to six months in specified cases.
• SEBI mandated SEBI staff to liquidate or freeze personal securities holdings, file initial, annual and event-based conflict disclosures, and recuse from decisions when conflicts arise.
• SEBI approved creation of an Office of Ethics and Compliance (OEC), a digital monitoring system and a whistle-blower framework for stronger conflict-of-interest oversight.