SEBI Proposes New Rules to Expand Accredited Investor Pool

The Securities and Exchange Board of India proposed a revamp of its Accredited Investor framework on August 13, 2026, to expand the pool of sophisticated investors and increase participation in alternative investment funds. The regulator introduced a securities-market-assets eligibility route, which would allow individuals with at least Rs 5 crore in such assets and body corporates or trusts with Rs 20 crore to qualify.

SEBI estimates these changes could expand the eligible base to 3.7 lakh investors, approximately four times the current level of participation in alternative investment funds. The regulator stated that the proposed threshold would ensure that eligible investors have sufficient financial wherewithal and that a substantial population of them has the willingness to take risk.

Other proposals include a manager-led accreditation process, allowing investment managers to determine an investor's status during onboarding as an alternative to independent agencies. SEBI also suggested granting deemed Accredited Investor status to all Persons Resident Outside India, including foreign portfolio investors, to simplify access to private markets. The regulator is inviting public comments on the consultation paper until September 3, 2026.