Angel Funds registered on or before 10 September 2025 get till 31 March 2027 to move to Accredited Investors only: SEBI relaxes the timeline
SEBI has extended the transitional period for Angel Funds registered on or before 10 September 2025 to comply with the Accredited Investor mandate. The date moves from 8 September 2026 to 31 March 2027. Until then such funds cannot offer investment opportunities to more than 200 non-Accredited Investors, and after it they cannot accept contributions from non-Accredited Investors.
Key facts
In 30 seconds
- Circular No. HO/19/34/11(7)2025-AFD-POD1/I/20626/2026 is dated 7 September 2026 and is in force with immediate effect.
- It applies to Angel Funds registered with SEBI on or before 10 September 2025.
- New date to implement the Accredited Investor mandate: on or before 31 March 2027 (earlier 8 September 2026).
- During the transition, investment opportunity cannot be offered to more than 200 non-Accredited Investors.
- After 31 March 2027, no contribution for investment in an investee company can be accepted from non-Accredited Investors.
- Existing investors continue to hold investments already made, as per the PPM and fund documents.
हिंदी में सार
SEBI ने 7 सितंबर 2026 के सर्कुलर से 10 सितंबर 2025 या उससे पहले रजिस्टर्ड Angel Funds को राहत दी है: सिर्फ़ Accredited Investors लेने की शर्त पूरी करने की आख़िरी तारीख़ 8 सितंबर 2026 से बढ़ाकर 31 मार्च 2027 कर दी गई है। इस बीच 200 से ज़्यादा गैर-accredited निवेशकों को निवेश का अवसर नहीं दिया जा सकता। मौजूदा निवेशक अपना किया हुआ निवेश रखे रह सकते हैं।
Before and now
8 September 2026 (para 8.1.2 of the AIF Master Circular dated 3 June 2026).
31 March 2027.
The mandate
The SEBI (Alternative Investment Funds) Regulations, 2012 were amended and notified on 9 September 2025 to prescribe a revised regulatory framework for Angel Funds. A SEBI circular of 10 September 2025 set out the conditions and modalities; these now sit in Chapter 8 of the SEBI Master Circular for AIFs dated 3 June 2026.
Under para 8.1.1 of that Master Circular, Angel Funds granted registration after 10 September 2025 must on-board, and offer investment opportunities to, Accredited Investors only. Angel Funds registered on or before that date were given a transitional period under para 8.1.2.
What has changed
By a circular dated 7 September 2026, SEBI has extended that transitional period. The circular says the decision is based on a representation from the AIF industry asking for more time for the then existing Angel Funds, and is for their ease of compliance.
| Condition (para 8.1.2) | Earlier | Now |
|---|---|---|
| Implement the Accredited Investor mandate | On or before 8 September 2026 | On or before 31 March 2027 |
| Investment opportunity to non-Accredited Investors during the period | Not to more than 200 | Not to more than 200 (unchanged) |
| Contribution from non-Accredited Investors for investment in an investee company | Not after 8 September 2026 | Not after 31 March 2027 |
| Existing investors | Continue to hold investments already made, as per the PPM and/or fund documents | Unchanged |
What stays the same
All other provisions of Chapter 8 of the AIF Master Circular remain unchanged. The requirement for Angel Funds registered after 10 September 2025 is not touched by this circular. SEBI has also updated the Master Circular for AIFs with the new text.
The circular is issued under section 11(1) of the SEBI Act, 1992 read with regulations 19D(1) and 36 of the AIF Regulations.
What Angel Funds should do
- Funds registered on or before 10 September 2025 should plan to have only Accredited Investors on board by 31 March 2027.
- Until then, keep count: investment opportunities cannot go to more than 200 non-Accredited Investors.
- Do not accept a contribution for an investee company from a non-Accredited Investor after 31 March 2027.
Questions and answers
Which Angel Funds get the extension?
Angel Funds registered with SEBI on or before 10 September 2025. Funds granted registration after that date are already required to on-board and offer investment opportunities to Accredited Investors only.
What is the new deadline?
31 March 2027. The earlier date in para 8.1.2 of the AIF Master Circular was 8 September 2026.
Can such a fund still take non-accredited investors?
During the transitional period it shall not offer investment opportunity to more than 200 non-Accredited Investors, and it shall not accept contribution for investment in an investee company from non-Accredited Investors after 31 March 2027.
What happens to existing investors who are not accredited?
Existing investors continue to hold the investments already made in the Angel Fund, as per the terms of the PPM and/or fund documents.
Published 7 September 2026. Updated 6 October 2026. This report is for general information and is not professional advice. Read the source document before acting on it.