The Securities and Exchange Board of India (SEBI) has announced relaxed deadlines for alternative investment funds (AIFs) regarding the dematerialization of investments. Starting July 1, 2025, all AIF investments must be held in dematerialized form, with certain exemptions for investments made prior to this date. Exemptions do not apply if the investee company must legally dematerialize its securities or if the AIF exercises control over the company. SEBI aims to enhance investor protection and market transparency through these regulations, following earlier directives for AIFs to dematerialize their units based on their corpus size.