Mumbai (Maharashtra) [India], November 5 (ANI): The Securities and Exchange Board of India (SEBI) on Thursday revised its accredited investor framework, allowing fund and portfolio managers to directly determine investors' accreditation status while introducing securities market exposure thresholds of Rs 5 crore and Rs 20 crore for different categories of investors.
In a circular issued on Thursday, the market regulator said the changes aim to simplify and expedite the accreditation process following amendments to the SEBI (Alternative Investment Funds) Regulations, 2012, notified on October 15, 2026.
"With an objective to ease and expedite the process of accreditation, the SEBI (Alternative Investment Funds) Regulations, 2012 ('AIF Regulations'), have been amended and notified on October 15, 2026," the circular stated.
Under the revised framework, managers of Alternative Investment Funds (AIFs), asset management companies of Specialized Investment Funds (SIFs) and registered portfolio managers can determine and record an investor's accredited status at onboarding or during the tenure of a scheme after verifying eligibility.
"Manager led accreditation is an additional and optional route. The Accreditation Agency route shall continue to be available," SEBI said.
The regulator clarified that accreditation determined by a manager will remain valid for three years and will be recognised across managers belonging to the same corporate group.
However, investors approaching managers outside the same group will require a fresh accreditation assessment.
SEBI also introduced securities market exposure as an eligibility criterion for accredited investors.
"The minimum qualifying securities market exposure shall be INR 5 crore in the case of an individual, Hindu Undivided Family, family trust or sole proprietorship, and INR 20 crore in the case of a body corporate or a trust other than a family trust," the circular stated.
Qualifying exposure includes securities held in dematerialised form, mutual fund investments, unlisted securities, overseas securities market investments and investments under the National Pension System (NPS).
Investors can establish eligibility through income tax returns, audited financial statements, electronic Consolidated Account Statements (eCAS) or certificates issued by practising chartered accountants, depending on the applicable criteria.
For accreditation based on securities market exposure, an eCAS summary statement not older than six months or a chartered accountant's certificate confirming the prescribed threshold will be required.
The regulator also introduced safeguards for manager-led accreditation, including periodic internal audits, compliance reviews, conflict-of-interest controls and grievance redressal mechanisms.
Managers must maintain supporting documents and verification records for at least five years from accreditation or until five years after an investor ceases to be associated with their schemes, whichever is later.
In another significant change, SEBI allowed Limited Liability Partnerships (LLPs) to qualify as accredited investors, provided each partner independently satisfies the prescribed eligibility criteria.
The regulator also granted deemed accredited investor status to persons residing outside India.
"A Person Resident Outside India, as defined under the Foreign Exchange Management Act, 1999, shall be deemed to be an Accredited Investor and shall not be required to obtain a certificate of accreditation or undergo Manager led accreditation," SEBI stated.
However, applicable anti-money laundering, client due diligence, beneficial ownership identification and source-of-funds verification requirements will continue.
Investors accredited at onboarding will retain their status for the remaining life of the scheme, while existing accreditation certificates will remain valid for their unexpired duration.
"This circular shall come into force with immediate effect," the regulator said, adding that the Master Circular for AIFs dated June 3, 2026, has also been updated to incorporate the revised provisions. (ANI)
SEBI eases accredited investor norms, allows fund managers to certify eligibility; introduces Rs 5 crore exposure threshold
