The Securities and Exchange Board of India (SEBI) has announced the modalities for implementing the framework for Accredited Investors to streamline participation in the securities market. The framework follows the amendment to the SEBI (Alternative Investment Funds) Regulations, 2012, which were amended and notified on October 15, 2026.
Accredited Investors are investors who meet prescribed financial and other eligibility criteria and are given greater flexibility to participate in certain investment products.
In a circular, SEBI noted that a Manager may determine and record an investor’s accredited status during onboarding or during the tenure of a scheme, provided the investor meets the eligibility criteria under the AIF Regulations and this circular.
The statement defines a “Manager” as:
An accreditation determined by a Manager will be recognized across Managers within the same Group for AIFs, SIFs, and portfolio management services (PMS) for a validity period of three years from the date of accreditation. However, an Investment Adviser (IA) or Research Analyst (RA) cannot independently determine accredited status, though they may rely on a valid determination made by a Manager within their Group.
The Manager must record the accreditation status of an investor and confirm it in writing, specifying the date of accreditation and the period of validity.
Manager-led accreditation is an additional and optional route. The Accreditation Agency route remains available. When an investor presents a valid certificate of accreditation from a recognized Accreditation Agency, the Manager shall rely on it and not perform a fresh determination during its validity.
The minimum qualifying securities market exposure is set at:
The Manager or Accreditation Agency, as applicable, shall verify that the applicant meets the eligibility criteria specified under Regulation 2(1)(ab) of the AIF Regulations based on income, net worth, or securities market exposure.