India, Feb. 15 -- Markets watchdog Securities and Exchange Board of India (SEBI) has now relaxed its mandates for alternative investment funds (AIFs) to hold their investments in dematerialised form.

"Any investment made by an AIF on or after July 01, 2025, shall be held in dematerialised form only, irrespective of whether the investment is made directly in the investee company or is acquired from another entity," SEBI said in a circular.

Dematerialisation essentially means transforming the physical shares and securities into digital or electronic form to ensure safety, convenience and efficiency. Notably, AIF is a privately pooled investment vehicle that collects funds from investors under a defined investment policy. The funds are inf...