SEBI has issued guidelines to operationalize the newly introduced AI-only schemes and enhanced flexibilities for Large Value Funds (LVFs) under the AIF Regulations amended on 19 November 2025. New schemes launched as AI-only or LVF must carry “AI only fund” or “LVF” in their names, and existing eligible AIFs/schemes may migrate to these categories with 100% investor consent, after which the scheme name must be updated and reported to SEBI and depositories within 15 days. Investors who qualify as Accredited Investors at onboarding will retain that status for the entire scheme tenure. AI-only schemes will have a maximum permissible extension of five years (including extensions prior to conversion). LVFs are exempted from the standard PPM format and annual audit of PPM terms, without requiring investor waivers. Managers must include compliance with this circular in the Compliance Test Report, and the circular is effective immediately.
