SEBI implements optional accreditation by fund and portfolio managers and broader accredited investor eligibility

The Securities and Exchange Board of India (SEBI) has issued rules implementing its revised accredited investor framework with immediate effect, putting into operation reforms approved by its board on Sept. 24, 2026. Managers of alternative investment funds (AIFs), asset management companies of Specialized Investment Funds (SIFs) and portfolio managers may determine investors’ accredited status as an optional alternative to recognized accreditation agencies. Manager determinations last three years and are recognized across managers within the same corporate group. Investment advisers and research analysts cannot accredit investors independently but may rely on valid determinations by a manager within their group. Onboarding by a manager outside the group requires a fresh determination. Agency certificates also carry three years of validity and must be accepted without reassessment, while existing certificates retain their unexpired validity. Investors accredited when entering a scheme retain that status for its remaining life. The additional securities market exposure route requires at least INR 5 crore for individuals, Hindu Undivided Families, family trusts and sole proprietorships, or INR 20 crore for bodies corporate and other trusts. Qualifying exposure includes securities held in dematerialized form, including unlisted securities, and mutual fund investments held through folios. Overseas securities investments and National Pension System holdings also qualify. Unlisted and overseas securities not valued in the depository statement require certification by a practising chartered accountant. Limited liability partnerships qualify where each partner independently meets the applicable eligibility criteria. Persons resident outside India are deemed accredited without certification or manager assessment, but managers must document their residency basis and maintain client due diligence, beneficial ownership and source of funds checks. Managers undertaking accreditation must document their decisions, conduct periodic internal audits and compliance reviews, and separate accreditation from business development and distribution. Their policies must address grievances, data privacy and cybersecurity. Supporting records must be retained for at least five years from accreditation or until five years after the investor leaves all schemes managed by that manager, whichever is later.