SEBI Extends Deadline for Angel Funds to Disclose Investment Allocation Methodology in PPMs [Read Circular]
SEBI extends the deadline for Angel Funds to disclose their investment allocation methodology in Private Placement Memorandums to January 31, 2026.
Deadline - Extended - Taxscan
Deadline - Extended - Taxscan
The Securities and Exchange Board of India (SEBI) issued a circular dated October 15, 2025, has granted additional time to Angel Funds for disclosing their investment allocation methodology in their Private Placement Memorandums (PPMs).
SEBI announced that the timeline for compliance with this requirement has been extended from October 15, 2025, to January 31, 2026. The relaxation aims to provide ease of compliance and address concerns raised by the Alternative Investment Fund (AIF) industry about meeting the earlier deadline.
Angel Funds are a sub-category of Venture Capital Funds under SEBI’s Alternative Investment Funds (AIF) Regulations, 2012. They pool money from angel investors to invest in early-stage startups and emerging businesses.
In recent months, SEBI has introduced several regulatory changes to strengthen transparency, governance, and accountability in the functioning of such funds. On September 9, 2025, SEBI notified amendments to the AIF Regulations, and on September 10, 2025, it issued a detailed circular outlining the revised framework for Angel Funds.
One of the new requirements, mentioned in paragraph 8.3 of the September circular, mandated that all existing Angel Funds must include in their PPMs a clearly defined methodology for allocating investments among investors who approve a particular investment proposal. Further, it stated that any investments made after October 15, 2025, should strictly follow this disclosed allocation methodology.
Following industry feedback, SEBI has now decided to extend this deadline. The regulator explained that several fund managers and industry participants requested more time to revise their PPMs and establish transparent internal systems for allocation.
After considering these representations, SEBI extended the implementation timeline by over three months. Any investment made by Angel Funds after January 31, 2026, must comply with the defined methodology disclosed in their PPMs.
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