Chapter III · Investment Conditions and Restrictions
Regulation 13
Tenure
Chapter III · Investment Conditions and Restrictions
SEBI (Alternative Investment Funds) Regulations, 2012
In plain English
In plain English
Category I and II funds are close-ended, with a minimum tenure of three years. Category III schemes can be open-ended or close-ended. A close-ended fund can extend its tenure by up to two years with the approval of two-thirds of unit holders by value; an Accredited Investors only fund can extend by up to five years on the same approval. Without that consent, or when the extended tenure ends, the fund or scheme is wound up under Regulation 29.
What the Master Circular adds
From SEBI's Master Circular for AIFs (updated 16 June 2026). The Regulation sets the rule; the Master Circular sets how it works in practice.
- MC Ch 12
The tenure of a close-ended scheme runs from the date of its first close.
- MC Ch 12
For a large value fund for accredited investors, first close is due within 12 months of registration or of filing the PPM, whichever is later.
Where this sits
Regulation 13 is in Chapter III — Investment Conditions and Restrictions of the SEBI (Alternative Investment Funds) Regulations, 2012.
Key numbers
Provisos, explanations and conditions
Quoted from the regulation text. These qualify or carve out exceptions to the main rule.
Provided further that the extension in tenure of any existing scheme of[Accredited Investors only fund] shall be subject to such conditions as may be specified by the Board from time to time.] (6)[In the absence of consent of unit holders under sub-regulation (5) or upon expiry of the extended tenure, the Alternative Investment Fund or the scheme of the Alternative Investment Fund shall be wound up in accordance with Regulation 29 of these regulations.]
What changed
No change to this regulation by the 2026 amendments (No. 303 of 16 April 2026 and No. 313 of 10 July 2026).
Words in square brackets in the official text mark earlier amendments made before 2026. Their earlier wording is not shown because it has not been verified here.
Where it connects
Provisions this regulation refers to
Related Master Circular chapters (by subject)
- Chapter 12 · Timeline for first close and calculation of tenure of AIFs
- Chapter 23 · Flexibility to AIFs and their investors to deal with unliquidated investments of…
Chapter
Check yourself
8 practice questions on Regulation 13, each with an explanation for every option.
- What is the minimum tenure of a Category I or Category II AIF or its schemes?
- Which category of AIF may have open-ended schemes?
- A close-ended Category II scheme wants to extend its tenure. What is permitted?
- How long may an Accredited Investors only fund extend its tenure?
- True or false: if unit holders do not approve an extension, the fund or scheme is wound up under Regulation 29.
The regulation
13. (1) Category I Alternative Investment Fund and Category II Alternative Investment Fund shall be close ended and the tenure of fund or scheme shall be determined at the time of application subject to sub-regulation (2) of this regulation.
(2) Category I and II Alternative Investment Fund or schemes launched by such funds shall have a minimum tenure of three years. (3)[Schemes of] Category III Alternative Investment Fund may be open ended or close ended. (4)[The manner of calculating the tenure of a close ended scheme of an Alternative Investment Fund, including the manner of modification of the tenure, may be specified by the Board from time to time.]
(5) Extension of the tenure of the close ended Alternative Investment Fund may be permitted up to two years subject to approval of two-thirds of the unit holders by value of their investment in the Alternative Investment Fund[:] [Provided that a[Accredited Investors only fund] may be permitted to extend its tenure up to five years subject to the approval of two-thirds of the unit holders by value of their investment in the[Accredited Investors only fund]:
Provided further that the extension in tenure of any existing scheme of[Accredited Investors only fund] shall be subject to such conditions as may be specified by the Board from time to time.] (6)[In the absence of consent of unit holders under sub-regulation (5) or upon expiry of the extended tenure, the Alternative Investment Fund or the scheme of the Alternative Investment Fund shall be wound up in accordance with Regulation 29 of these regulations.]
Text from the consolidated Regulations. Square brackets and [***] mark earlier amendments and omissions, as in the official text. Check the official Gazette text before relying on it.
Last checked against source on 10 October 2026: consolidated Regulations to 19 November 2025, read with Amendment Regulations No. 303 (16 April 2026) and No. 313 (10 July 2026).
Source and verification
- Instrument
- SEBI (Alternative Investment Funds) Regulations, 2012 — Regulation 13
- Text used
- Consolidated Regulations as amended up to 19 November 2025, read with the 2026 amendments (no change to this regulation)
- Last checked
- 10 October 2026
- Official source
- www.sebi.gov.in → Legal → Regulations. The Gazette text prevails.
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