SEBI Proposes Major Overhaul of Accredited Investor Framework

Last updated: 14 August 2026

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The Securities and Exchange Board of India (SEBI) is proposing significant changes to the Accredited Investor (AI) framework. These proposals, based on stakeholder feedback, include introducing securities market assets as an additional eligibility criterion, potentially expanding the AI pool considerably. SEBI also aims to simplify the onboarding process and extend the scope of deemed Accredited Investors to all persons resident outside India, allowing for easier investment in AIFs.

SEBI seeks public comments on the Consultation Paper on Review of the Accredited Investor Framework

Today, SEBI has issued a consultation paper for a comprehensive review of the existing AI framework based on the suggestions received from various stakeholders and the recommendations of SEBI's Alternative Investment Policy Advisory Committee (AIPAC).

SEBI proposes to introduce securities market assets (with eligibility threshold is INR 5 crore for individuals and INR 20 crore for body corporates) as an additional eligibility criterion for accreditation, alongside the existing income and net-worth based criteria. This one proposal itself, has the potential to expand the pool of eligible Accredited Investors to around 4 lakh, compared to the existing AIF investor base of around 1 lakh.

Other proposals include simplifying the onboarding process through manager led accreditation(which will be valid at a group level), in addition to the existing Accreditation Agency route; Streamlining the validity of accreditation as 3 years on the basis of latest documents;

SEBI also proposes to bring global inclusivity by expanding the scope of deemed Accredited Investors to cover all Persons Resident Outside India (PROI), as defined under the Foreign Exchange Management Act, 1999. This will enable all NRIs, OCIs and all other persons resident outside India to invest in AIFs more seamlessly without minimum threshold.

Since its introduction, accreditation has assumed increasing significance within the AIF ecosystem, with its benefits now extending across AIFs, Specialised Investment
Page 2of 2Funds (SIFs) of Mutual Funds, Portfolio Management Services (PMS) and Angel Funds.

The Consultation Paper is placed on the SEBI website at the following link:
https://www.sebi.gov.in/reports-and-statistics/reports/aug-2026/consultation-paper-on-review-of-accredited-investor-framework_103550.html

Comments are invited on the above Consultation Paper. The last date to submit comments is September 03, 2026.

Mumbai August 13, 2026

FAQ :

SEBI is proposing a comprehensive review, including introducing securities market assets as an additional eligibility criterion, simplifying the onboarding process, and expanding the scope of deemed Accredited Investors to cover all Persons Resident Outside India.

The proposed eligibility threshold for securities market assets is INR 5 crore for individuals and INR 20 crore for body corporates.

The introduction of securities market assets as an eligibility criterion alone has the potential to expand the pool of eligible Accredited Investors to around 4 lakh, compared to the current base of approximately 1 lakh.

SEBI proposes simplifying onboarding through manager-led accreditation, which will be valid at a group level, in addition to the existing Accreditation Agency route.

Public comments are invited on the consultation paper regarding the review of the Accredited Investor Framework.

The last date to submit comments is September 03, 2026.