Relaxation in timeline with respect to Accredited Investor mandate for Angel Funds

September 07, 2026 

To,All Alternative Investment Funds(AIFs)

Sir/Madam,  

Sub: Relaxation in timeline with respect to Accredited Investor mandate for Angel Funds

1.Securities  and  Exchange  Board  of  India (Alternative  Investment  Funds)Regulations, 2012 (‘AIF Regulations’) wereamended  and notifiedon September  09,  2025,to prescribe the revised regulatory framework for Angel Funds.
2.Subsequently,  SEBI vide circular  dated September  10,  2025 stipulatedthe specific conditions  and modalities  with  respect  to the  revised  regulatory  framework  for  Angel Funds.The same has now been subsumed in Chapter 8 of the SEBI Master Circular for AIFs dated June 03, 2026(‘AIF Master Circular’). 
3.In  terms  ofpara 8.1.1of  the AIF  Master  Circular,Angel  Funds  which aregranted registration  by SEBI post September  10,  2025, have  been mandated  to  on-board  and offer   investment   opportunities   to   Accredited   Investors   only   (‘Accredited   Investor mandate’). 4.Further,  in terms  of  para  8.1.2  of  the AIF Master  Circular, Angel  Funds  registered  with SEBI  on  or  before September  10,  2025,have been provided  a  transitional  period to comply with the Accredited Investor mandate, as per the following conditions –

• (a)Such  Angel  Funds  shall  implement  the Accredited  Investormandate  on  or  before September 08, 2026 and shall not offer investment opportunity to more than 200 non-Accredited Investors during this period.
• (b)Such  Angel  Funds  shall  not  accept  contribution  for  investment  in  an  investee company from non-Accredited Investors, post September 08, 2026.
• (c)Existing  investors  of  such  Angel  Funds  shall  continue  to hold  their  investments already made in the Angel Fund as per the terms of the PPM and/or fund documents of the Angel Fund.

5.Based  on  representation  from  the  AIF  industryrequesting  additional  time for  the  then existing Angel Funds to  meet the  Accredited  Investor  mandate,it  has  been  decidedto extendthe said  time line specified  at  para  4(a)  and  4(b)  above till March31,  2027,  for their ease  of  compliance.  Accordingly, para  8.1.2  of  the  AIF  Master  circular  shall  stand modified as under –

“Angel  Funds  registered  with  SEBI  on  or  before  September  10,  2025  shall  comply with the following –

• (a)Such  Angel  Funds  shall  implement  the  aforesaid  mandate  on  or  before March31,  2027and shall  not  offer  investment  opportunity  to  more  than  200  non-Accredited Investors during this period.
• (b)Such  Angel  Funds  shall  not  accept  contribution  for  investment  in  an  investee company from non-Accredited Investors, post March31, 2027.
• (c)Existing  investors  of  such  Angel  Funds  shall  continue  to  hold  their  investments already made  in  the  AngelFund  as  per  the  terms  of  the  PPM  and/or  fund documents of the Angel Fund.”

6.All other provisions of Chapter 8 of the AIF Master Circular shall remain unchanged.
7.This circular shall come intoforce with immediate effect.
8.This circular is issued with the approval of the competent authority. 
9.This  circular  is  issued in  exercise  of  powers  conferred  under  Section  11(1)  of  the Securities and Exchange Board of India Act, 1992, read with Regulations 19D(1)and 36 of  AIF  Regulations,to protect the interests of  investors  in  securities  and  to promote  the development of, and to regulate the securities market.
10.The circular is available on SEBI website at www.sebi.gov.inunder the categories “Legal Circulars”and “Info for Alternative Investment Funds”.
11.The SEBI Master Circular for AIFs dated June 03, 2026 has also been updated with the provisions of  this  circular.  The  updated  Master  Circular  for  AIFs  is  available  on  SEBI website  at www.sebi.gov.in in  the  path “Legal Master  Circulars”and “Info  for Alternative Investment Funds”.

Yours faithfully,

Anshul Goyal
DeputyGeneral Manager
Tel no.: +91-22-2644 9389
anshulg@sebi.gov.in