Investment Fund - Regulatory Developments February 2026

The month of February 2026 witnessed a wide-ranging wave of regulatory activity, with SEBI and IFSCA introducing significant reforms across alternative investment funds, mutual funds, REITs and InvITs, and capital market intermediaries. Key developments during the month included SEBI’s consultation on AIF winding-up flexibility and the “inoperative fund” framework, the overhaul of mutual fund scheme categorisation, revised ETF price band norms, the introduction of the IFSCA “Master Key” unified registration framework, RBI’s proposal to permit bank lending to REITs, and enhanced social media disclosure requirements for SEBI-regulated entities. Collectively, these developments reflect a concerted push toward transparency, operational efficiency, and investor protection across the investment funds ecosystem.