Chapter IV · General Obligations, Responsibilities and Transparency
Regulation 29B
[Dissolution Period
Chapter IV · General Obligations, Responsibilities and Transparency
SEBI (Alternative Investment Funds) Regulations, 2012
In plain English
In plain English
A scheme of an AIF can enter a dissolution period, in the manner and on the conditions SEBI specifies, after filing an information memorandum with SEBI through a merchant banker. The dissolution period cannot be longer than the scheme's original tenure and cannot be extended once it expires.
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 23
Before seeking investors' consent for a dissolution period, the manager must arrange a bid for at least 25% of the value of the unliquidated investments and disclose the proposed dissolution period, the investments, two independent valuations and an indicative bid range. Dissenting investors are offered a full exit out of that bid, and SEBI must be informed before the liquidation period ends.
Where this sits
Regulation 29B is in Chapter IV — General Obligations, Responsibilities and Transparency of the SEBI (Alternative Investment Funds) Regulations, 2012.
Provisos, explanations and conditions
This regulation has no provisos or explanations in its text. Check Connections for other provisions it refers to.
What changed
No change to this regulation by the 2026 amendments (No. 303 of 16 April 2026 and No. 313 of 10 July 2026).
Where it connects
The text of this regulation does not refer to other numbered regulations.
Chapter
Check yourself
2 practice questions on Regulation 29B, each with an explanation for every option.
- How long can a scheme's dissolution period last?
- Before seeking consent for a dissolution period, the manager must arrange a bid for at least what share of the value of unliquidated investments?
The regulation
29B. (1) A scheme of an Alternative Investment Fund may enter into a dissolution period in the manner and subject to such conditions as may be specified by the Board.
(2) The scheme entering into a dissolution period shall file an information memorandum with the Board through a merchant banker in the manner as may be specified by the Board.
(3) The dissolution period of a scheme of an Alternative Investment Fund shall not be more than the original tenure of the scheme and shall not be extended in any manner upon expiry of the dissolution period.
(4) The scheme of the Alternative Investment Fund shall not accept any fresh commitment from any investor and shall not make any new investment during the dissolution period.] INSPECTION
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 29B
- 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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