SEBI Simplifies Accreditation Process for Indian Investment Funds

The Securities and Exchange Board of India updated its framework for accredited investors on November 5, 2026, to accelerate the accreditation process. The new rules allow managers of Alternative Investment Funds, Specialised Investment Funds, and portfolio managers to certify an investor's status. This manager-led certification serves as an optional alternative to using recognized accreditation agencies and remains valid for three years across managers within the same corporate group.

To qualify under the new guidelines, SEBI introduced securities market exposure as a criterion. Individuals, family trusts, sole proprietorships, and Hindu Undivided Families must hold a minimum of ₹5 crore, while body corporates and other trusts require ₹20 crore. Limited liability partnerships are eligible if every partner meets these requirements, and persons resident outside India are classified as deemed accredited investors.

To mitigate conflicts of interest, the regulator requires managers to maintain verification records for at least five years. Managers must also establish formal policies for data privacy and grievance redressal. SEBI noted that a manager may determine and record an investor's status at onboarding or during a scheme's tenure after verifying eligibility criteria.