SEBI eases Accredited Investor rules: fund managers can now certify investors

What has changed

In a circular dated 5 November 2026, SEBI changed the rules to make the process of becoming an Accredited Investor easier and faster. The AIF Regulations were amended and notified on 15 October 2026 for this purpose. Now a fund manager can itself determine and record an investor’s accredited status, provided the investor meets the prescribed criteria.

Manager led accreditation is an additional and optional route. The option of getting a certificate from a recognised Accreditation Agency continues as before. If an investor holds a valid Agency certificate, the Manager must rely on it and not conduct a fresh determination during its validity.

Who benefits

This facility is for large investors who put money into services such as AIFs, Specialized Investment Funds or portfolio management. The Manager must confirm the accreditation in writing to the investor, giving the date of accreditation and the validity period. A determination by one Manager is recognised across Managers of the same Group. Investment Advisers and Research Analysts cannot determine accredited status on their own, but may rely on a valid determination by a Manager in their Group.

How much money and which documents

The minimum qualifying securities market exposure is Rs 5 crore for an individual, Hindu Undivided Family, family trust or sole proprietorship. For a body corporate or a trust other than a family trust, it is Rs 20 crore. Securities held in demat form, mutual fund folios, unlisted securities in demat form, overseas securities market investments and National Pension System investments all count.

For income, the latest Income Tax Return or a CA certificate is needed. For net worth, latest audited financial statements or a CA certificate not older than six months will do. For securities market exposure, an eCAS statement or CA certificate not older than six months is required.

How long the status lasts

A determination by a Manager is valid for three years from the date of accreditation. A certificate from a recognised Accreditation Agency is also valid for three years. An investor who is an Accredited Investor when onboarded into a scheme continues to be treated as one for the remaining life of that scheme. Certificates issued before this circular remain valid for their unexpired period.

What the Manager must do

A Manager undertaking accreditation is responsible for ensuring the eligibility criteria are met and must keep all records, documents and verification evidence for at least five years. Every such Manager must adopt an accreditation policy covering conflict of interest controls, a grievance redressal process and record retention with data privacy and cybersecurity safeguards.

LLPs and persons resident outside India

A Limited Liability Partnership is recognised as an Accredited Investor where each partner independently meets the eligibility criteria. A Person Resident Outside India under the Foreign Exchange Management Act, 1999 is deemed to be an Accredited Investor and does not need a certificate or Manager led accreditation. However, AIFs and their Managers must still carry out client due diligence and source of funds checks under the money-laundering law.

The circular comes into force with immediate effect from 5 November 2026. It is available on www.sebi.gov.in under Legal → Circulars.