Accredited Investor framework: SEBI Board approves accreditation by AIF, SIF and PMS managers, a ₹5 crore market-exposure test and deemed status for non-residents
The SEBI Board has approved four changes to the Accredited Investor framework: managers of AIFs, AMCs offering SIFs and portfolio managers may accredit investors; securities market exposure becomes an eligibility test; persons resident outside India are deemed accredited; and LLPs can qualify. It also approved extending to all AIFs the bar on a manager using fund assets for its own losses.
Key facts
- In force
- Approved by the SEBI Board on 24 September 2026; commencement date not stated in the release
- Who it affects
- High-net-worth investors, HUFs, family trusts, LLPs, NRIs and FPIs, AIF managers, AMCs offering SIFs, portfolio managers, accreditation agencies
- What it is
- Relief
- Section
- SEBI
- Published
- 24 September 2026
In 30 seconds
- Manager-led accreditation is an additional and optional route; the Accreditation Agency route continues.
- New test: securities market exposure of at least ₹5 crore for individuals, HUFs, family trusts and sole proprietorships; ₹20 crore for body corporates and other trusts.
- Persons Resident Outside India under FEMA, including FPIs, will be deemed Accredited Investors.
- LLPs will be eligible where each partner is an Accredited Investor.
- Accreditation under both routes will be valid for three years.
- AIF Regulations to be amended so that investors in every form of AIF get the protection now available in trust-form AIFs.
हिंदी में सार
SEBI बोर्ड ने 24 सितंबर 2026 को Accredited Investor ढांचे में बदलाव मंज़ूर किए: AIF मैनेजर, SIF वाली AMC और पोर्टफ़ोलियो मैनेजर भी निवेशकों को accredit कर सकेंगे; कम से कम ₹5 करोड़ (व्यक्ति, HUF, फ़ैमिली ट्रस्ट) या ₹20 करोड़ (कंपनी व अन्य ट्रस्ट) के securities market exposure पर पात्रता मिलेगी; भारत से बाहर के निवासी और FPI स्वतः accredited माने जाएंगे। Accreditation तीन साल के लिए मान्य होगा। लागू होने की तारीख़ रिलीज़ में नहीं दी गई है।
What was decided
Item 12 of SEBI’s press release on the Board meeting of 24 September 2026 is a review of the Accredited Investor (AccI) framework. The Board approved amendments with two aims: a simpler accreditation process and a larger pool of eligible investors.
| Change | What the Board approved |
|---|---|
| Manager-led accreditation | Managers of Alternative Investment Funds, AMCs offering Specialized Investment Funds (SIFs) and SEBI-registered portfolio managers will be permitted to accredit investors. This is an additional, optional route |
| Securities market exposure | An investor may qualify on exposure of at least ₹5 crore (individuals, HUFs, family trusts, sole proprietorships) or ₹20 crore (body corporates and other trusts). SEBI calls it a digitally verifiable additional criterion |
| Non-residents | Persons Resident Outside India, as defined under the Foreign Exchange Management Act, 1999, including Foreign Portfolio Investors, will be deemed to be Accredited Investors |
| LLPs | A Limited Liability Partnership will be eligible where each partner is an Accredited Investor, in line with the existing position for partnership firms |
Validity and portability
Accreditation will be valid for three years, whether it comes from a manager or from an Accreditation Agency. A manager-led accreditation will be portable across AIF, SIF and PMS products within the same group, subject to appropriate safeguards. The release does not spell out those safeguards.
SEBI’s reasons
According to the release, accreditation by the manager removes duplication in verification and cuts the time and cost involved. Deemed accreditation for non-residents is meant to give sophisticated investors based outside India easier access to eligible Indian securities market products and to help foreign capital come in. Overall, SEBI expects the measures to bring more capital from sophisticated investors into alternative investment products.
The proposal followed a consultation paper issued on 13 August 2026 and the recommendations of the Alternative Investment Policy Advisory Committee (AIPAC).
AIF investors: the same protection in every legal form
In the same meeting (item 11) the Board approved an amendment to the SEBI (Alternative Investment Funds) Regulations, 2012. Where an AIF is set up as a trust, the fund manager or its officers cannot use the trust’s assets to pay for their own losses, damages or expenses, including the cost of resolving investor disputes. The amendment extends that protection to all forms of AIF, whatever the form in which the fund is set up. It follows a consultation paper issued on 23 July 2026.
What investors and managers should do
- These are Board approvals; the release does not give a date from which they apply.
- Investors who do not meet the present tests may see whether the exposure thresholds of ₹5 crore or ₹20 crore fit them once the change is notified.
- AIF managers, AMCs with SIFs and portfolio managers who want to accredit investors themselves should wait for the detailed provisions, since the release mentions safeguards without listing them.
- The release does not deal with Angel Funds.
Questions and answers
Who will be able to accredit an investor after the change?
In addition to Accreditation Agencies, managers of AIFs, AMCs offering Specialized Investment Funds and SEBI-registered portfolio managers will be permitted to accredit investors. The manager-led route is optional and the agency route continues.
What is the securities market exposure test?
An investor will be able to qualify for accreditation with securities market exposure of at least ₹5 crore in the case of individuals, HUFs, family trusts and sole proprietorships, and ₹20 crore in the case of body corporates and other trusts.
Do NRIs and FPIs need separate accreditation?
Under the Board’s decision, Persons Resident Outside India as defined under FEMA, 1999, including Foreign Portfolio Investors, will be deemed to be Accredited Investors.
For how long is accreditation valid?
Three years, under both the manager-led route and the Accreditation Agency route.
What changes for investors in AIFs that are not trusts?
The Board approved an amendment extending to all forms of AIF the rule that a fund manager or its officers cannot use the fund’s assets to pay for their own losses, damages or expenses, including costs of resolving investor disputes. Today that protection applies where the AIF is set up as a trust.
Published 24 September 2026. Updated 5 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.