SEBI notifies modalities for Accredited Investor framework including Manager-led accreditation route

Key facts

• The Securities and Exchange Board of India (SEBI) announced modalities for implementing the Accredited Investor framework to streamline participation in the securities market.
• The framework follows the amendment to the SEBI (Alternative Investment Funds) Regulations, 2012, notified on October 15, 2026.
• A Manager (AIF manager, asset management company of a Specialized Investment Fund, or a portfolio manager) may determine and record an investor's accredited status during onboarding or during the tenure of a scheme.
• Manager-led accreditation is valid across Managers within the same Group for AIFs, SIFs, and PMS for three years from the date of accreditation.
• Investment Advisers and Research Analysts cannot independently determine accredited status but may rely on a valid determination by a Manager within their Group.
• Manager-led accreditation is an additional optional route; the Accreditation Agency route remains available, and a valid agency certificate must be relied upon without fresh determination.
• A certificate of accreditation from a recognized Accreditation Agency is valid for three years from the date of issuance.
• Minimum qualifying securities market exposure is INR 5 crore for individuals, Hindu Undivided Families, family trusts, or sole proprietorships, and INR 20 crore for body corporates or other trusts.
• Eligible securities market exposure includes dematerialized securities, mutual fund folios, unlisted dematerialized securities, overseas securities, and National Pension System investments.
• Eligibility is verified based on income, net worth, or securities market exposure under Regulation 2(1)(ab) of the AIF Regulations, with documents including Income Tax Returns, CA certificates, audited financials, net worth certificates not older than six months, and eCAS summary statements not older than six months.