Key Highlights for AIFs & Market Participants
🚀 Capital Markets at Record Highs
FY26 witnessed record capital mobilisation of ₹13.9 lakh crore.
366 IPOs raised ~₹1.9 lakh crore, led by strong mainboard activity.
SME IPOs also surged, indicating broad-based market depth.
Financial Services dominated fundraising (₹59,822 crore).
👉 Key trend: Markets are deepening across both large and emerging issuers.
📉 Secondary Market Volatility (March 2026)
Sharp correction:
Nifty ↓11.3% | Sensex ↓11.5%
Trigger: Geopolitical tensions + crude price spike + FPI outflows
Defensive sectors outperformed; banks & financials worst hit
👉 Insight: Global shocks continue to drive short-term volatility.
💸 FPI vs DII Dynamics
FPI outflow: ₹1.25 lakh crore (record sell-off)
DII inflow: ₹1.43 lakh crore (strong counterbalance)
👉 Structural shift: Domestic capital (MF/SIPs) stabilising markets.
📊 Fund Management Trends
Mutual Fund AUM: ₹73.7 lakh crore (↑12.2% YoY)
Net inflows FY26: ₹7.4 lakh crore
Equity schemes saw strong inflows despite volatility
👉 Takeaway: Retail participation remains resilient and growing.
🧾 AIF & Regulatory Developments (Important)
Revised AIF Reporting Framework
Updated formats aligned with latest regulations
Reduced reporting frequency → Ease of doing business
Custodian Regulations Strengthened
Mandatory segregation of regulated/unregulated activities
Enhanced governance, risk management & disclosures
Other Key Changes
MF debit freeze facility (investor protection)
Relaxed certification norms for non-core research roles
Intraday borrowing allowed for mutual funds
SGF norms tightened for commodity derivatives
👉 AIF Impact:
Lower compliance friction + stronger governance expectations
📈 Market Structure Trends
Debt market remains dominant (~₹9.1 lakh crore issuance)
Preferential allotments surged (+76%), while QIPs declined
Demat accounts reached 22.5 crore
👉 Signal: Continued financialisation of savings in India.
🌍 Global Context
India remains 2nd largest IPO market globally (14% share)
Global markets under pressure due to West Asia conflict
US seen as safe haven; emerging markets faced outflows
🧠 AIFServices Insight
Domestic liquidity (SIPs, DIIs) is now the key stabiliser
IPO market depth expanding → strong exit environment for AIFs
Regulatory focus = ease of doing business + risk controls
Global volatility remains the biggest external risk