SEBI Proposes Manager-Led Accreditation For Investors, Adds ₹5 Crore Securities Asset Criterion

The Securities and Exchange Board of India (SEBI) has proposed simplifying the onboarding process for Accredited Investors through manager-led accreditation, in addition to the existing Accreditation Agency route.

SEBI has issued a consultation paper for a comprehensive review of the Accredited Investor framework, based on suggestions received from stakeholders and recommendations of its Alternative Investment Policy Advisory Committee (AIPAC).

Under the proposal, manager-led accreditation would be available in addition to the existing Accreditation Agency route. SEBI has also proposed streamlining the validity of accreditation to three years based on the latest documents.

The regulator has further proposed introducing securities market assets as an additional eligibility criterion for accreditation, alongside the existing income and net-worth based criteria. The proposed eligibility threshold is ₹5 crore for individuals and ₹20 crore for body corporates.

SEBI said this proposal has the potential to expand the pool of eligible Accredited Investors to around 4 lakh, compared with the existing Alternative Investment Fund investor base of around 1 lakh.

SEBI has also proposed expanding the scope of deemed Accredited Investors to cover all Persons Resident Outside India, as defined under the Foreign Exchange Management Act, 1999.

The proposal would enable Non-Resident Indians, Overseas Citizens of India and other persons resident outside India to invest in Alternative Investment Funds more seamlessly without a minimum threshold.

The regulator said accreditation has assumed increasing significance within the Alternative Investment Fund ecosystem, with its benefits extending across Alternative Investment Funds, Specialised Investment Funds of Mutual Funds, Portfolio Management Services and Angel Funds.

Public comments on the consultation paper have been invited until September 3, 2026.