Sebi extends deadline to Jan 2026 to disclose allocation methodology by angel funds

Markets regulator Sebi on Wednesday extended the timeline to January 31, 2026, for disclosing the allocation methodology by angel funds in their Private Placement Memorandum (PPM).

Earlier, the deadline was October 15.

"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 said in its circular.

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

Under the Sebi's framework, angel funds will have to disclose a defined methodology in their PPMs for the purpose of allocating the investment among angel investors who provide approval for such investment.

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

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.