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<h1>SEBI Sets New Guidelines for AIFs: Dematerialization of Investments and Mandatory Custodian Appointment by 2024.</h1> The Securities and Exchange Board of India (SEBI) has issued guidelines for Alternative Investment Funds (AIFs) regarding the dematerialization of investments and the appointment of custodians. Effective October 1, 2024, all AIF investments must be held in dematerialized form, with exceptions for investments made before this date under certain conditions. Custodians must be appointed before the first investment of an AIF scheme, with existing schemes required to comply by January 31, 2025. Reporting standards for investments under custody will be developed by a Standard Setting Forum in consultation with SEBI. Compliance with these guidelines must be included in quarterly reports.