What's happening:An alternator will not generate an output current without an input field current, but there will be no field current until there is an alternator output! To solve this chicken-or-egg dilemma, alternators require a temporary source of field current called the excite current.
When the ignition switch is turned on, current flows from the battery, through the charge lamp to the alternator auxiliary terminal, and then through the field coil. As soon as the engine starts, however, the alternator begins generating current, which then makes the voltage at the auxiliary terminal 0.5 to 1.0 volt higher than the battery voltage. With only 0.5 to 1.0 volt across its terminals, the 12-volt charge-indicator lamp goes out. If it stays on or comes on again, you know that the alternator in not producing current.
Your problem:Possibility 1: There is a problem with the ignition switch. Maybe cleaning it will help. The charge light should only get power with the kill switch normal and the ignition on. Check to see if the choke light comes on with the ignition off; that would verify power on Pin 6 of the cluster which is normally off unless the ignition is on.
Possibility 2: Might be a blown diode on the diode board. Except for Possibility 1, the only way the charge light can come on with the ignition off is for current to leak through the diode board on the alternator. This is assuming that no aftermarket mods or devices are attached to your motorcycle. Is it completely stock?
Is it possible to get ahold of an oscilloscope to probe the alternator output? You're looking for AC voltage on the output of the alternator; there should be none. Another alternative is to use your multimeter on AC voltage range to measure the AC component of the alternator output. If it is high, you are probably looking at a blown diode, probably shorted.
An alternative is to disconnect the alternator and bring it to an automotive repair center that specializes in automotive charging systems to get it tested.
Diagram and explanation:http://www.buchanan1.net/charge.html