SEBI AIF Winding-Up Guidelines: Crypto Fund Accounting Software for Compliance
The Securities and Exchange Board of India (SEBI) issued new guidelines on June 15, 2026, for winding up Alternative Investment Funds (AIFs) and handling inoperative fund status. These rules affect fund managers, auditors, and accounting firms that service AIFs with crypto exposure. Crypto fund accounting software can help automate compliance with these requirements.
What the SEBI Guidelines Require
The circular addresses two main areas: retention of proceeds during winding up and declaring a fund as inoperative. Fund managers must now follow a structured process for distributing remaining assets, including crypto holdings. The guidelines require detailed record-keeping and reporting to SEBI. For crypto funds, this means tracking cost basis, fair value, and proceeds from digital assets accurately.
Retention of Proceeds and Inoperative Fund Status
When winding up an AIF, the fund must distribute all proceeds to investors within a specified timeline. If proceeds cannot be distributed due to unclaimed amounts or legal holds, the fund may retain them in a separate account. After a period of inactivity, the fund can be declared inoperative. Crypto fund accounting software must handle these scenarios by segregating retained assets and generating required reports.
Implications for Crypto Fund Accounting
Funds that invest in cryptocurrencies face unique challenges. Volatility and lack of standardized pricing complicate fair value measurement. The SEBI guidelines require audited financial statements during winding up. Crypto accounting for funds must address these issues with robust reconciliation tools. A crypto accountant needs software that can handle multiple exchanges, wallets, and token types while maintaining an audit trail.
How Crypto Fund Accounting Software Helps
Using crypto fund accounting software, accounting firms can automate the tracking of proceeds, cost basis, and unrealized gains. The software can generate SEBI-compliant reports for winding-up statements and inoperative fund declarations. It also supports multi-currency and multi-jurisdiction rules, which is vital for funds with global investors. Crypto accounting for accountants becomes more efficient with real-time data synchronization.
Role of the Crypto Accountant in Compliance
The crypto accountant must ensure that all transactions during the winding-up period are recorded accurately. This includes valuing illiquid tokens and handling retained proceeds. Crypto accounting for accounting firms requires specialized knowledge of both fund accounting standards and digital asset regulations. Crypto audit software can verify the integrity of the data and provide assurance to regulators.
Illustrative Scenario
To illustrate how this applies in practice, consider the following scenario: A Mumbai-based AIF with ₹500 crore in assets, including Bitcoin and Ethereum, begins winding up. The fund manager uses CryptaCount's crypto fund accounting software to automate the valuation of crypto holdings at fair value as per SEBI guidelines. The software generates the required reports for retained proceeds and inoperative fund status. The auditor uses the same platform to verify the calculations, ensuring a smooth closure.
Source: SEBI India