FME Regulatory Intelligence, Learning & Practice · IFSCA (Fund Management) Regulations, 2025
Valuation

Regulation 26

Valuation

IFSCA (Fund Management) Regulations, 2025Amended in 2026Chapter III · Schemes for Fund Management

Chapter III · Schemes for Fund Management

Regulation 26 – Valuation
Amended 2026 High importance about 3 min

Venture Capital schemes: Structure, eligible investors, permissible investments and the FME's own contribution for VC schemes.

1

In plain English

FME and fiduciaries must value investments per the Sixth Schedule valuation norms; as amended, this is explicitly tied to NAV computation/disclosure, with a broadened exemption for investments in other regulated, independently-valued schemes.

In plain English
2

The rule, in its own words

Read the exact text of Regulation 26
26. (1) The FME and fiduciaries shall ensure compliance of investment valuation norms, as specified in the Sixth Schedule. (2) 10[For the purpose of computation and disclosure of NAV to the investors and in line with] the investment valuation norms, the assets of the scheme shall be valued by an independent service provider, such as a fund administrator, a custodian, a credit rating agency registered with the Authority or a valuer registered with Insolvency and Bankruptcy Board of India or such other person as may be specified by the Authority: 11[Provided that this requirement shall not apply to the investments made by a scheme in other scheme(s), that are regulated by a financial sector regulator, directly or through a manager, in IFSC, India or foreign jurisdiction(s), and valued by any independent entity.]
Statutory text — Principal Regulations, 2025, consolidated as amended up to 10 September 2026 (including the Second Amendment, 2026). The notified Gazette text prevails. Tap a highlighted word for how it functions.
3

What this means in practice

Compliance actions
Applies to
Venture Capital scheme
Frequency
Per valuation cycle
Evidence
Valuation reports per Sixth Schedule; Exemption-basis documentation for underlying regulated schemes
Common mistake
Using internal or sponsor valuations instead of the Sixth Schedule norms.
4

What changed in 2026

Reg 26(2) valuation-norms wording amended to clarify the norms are "for the purpose of computation and disclosure of NAV to the investors and in line with" the specified valuation norms (Sixth Schedule).

Practical effect
Textual clarification tying valuation norms explicitly to NAV computation/disclosure purpose.
What to do
No substantive process change; update internal SOP references to the amended wording.

Valuation-norms exemption widened: applies to investments made by a scheme in other scheme(s) regulated by a financial sector regulator (directly or through a manager) in IFSC, India or a foreign jurisdiction, and valued by an independent entity — dropping the earlier narrower conditions.

Practical effect
Broader carve-out from Sixth Schedule valuation norms for fund-of-funds-style cross-investments into regulated, independently-valued schemes.
What to do
Re-assess which underlying scheme investments now qualify for the valuation-norm exemption; document the independent valuation and home regulator status.
5

Where it connects

Refers to / depends on

Read alongside

6

Check yourself

Quiz Centre

Test yourself on Regulation 26

6 questions in the unified bank test this regulation. Each explains every option and cites the provision.

VC scheme investments must be valued according to which schedule?
7

Your notes

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Regulation 26 Chapter III · Part A Amended 2026 High · about 3 min