SEBI seeks public comments on review of Accredited Investor framework
Under the consultation paper, SEBI has proposed introducing securities market assets as an additional eligibility criterion for accreditation, alongside the existing income and net-worth criteria. The proposed threshold is Rs 5 crore for individuals and Rs 20 crore for body corporates.
SEBI said the proposal could potentially expand the pool of eligible Accredited Investors to around 4 lakh, compared with the existing Alternative Investment Fund (AIF) investor base of around 1 lakh.
The regulator has also proposed simplifying the onboarding process by introducing manager-led accreditation, alongside the existing Accreditation Agency route. The accreditation would be valid at the group level under the proposed framework.
SEBI has further proposed streamlining the validity of accreditation to three years, based on the latest documents submitted by investors.
The consultation paper also proposes expanding the scope of deemed Accredited Investors to cover all Persons Resident Outside India (PROI) as defined under the Foreign Exchange Management Act, 1999. The proposal would allow NRIs, OCIs and other persons resident outside India to invest in AIFs without a minimum threshold.
SEBI said accreditation has gained increasing importance within the AIF ecosystem, with its benefits extending to AIFs, Specialised Investment Funds (SIFs) of mutual funds, Portfolio Management Services (PMS) and Angel Funds.
SEBI has invited public comments on the consultation paper. The last date for submitting comments is 3 September 2026.
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