The Securities and Exchange Board of India (SEBI) has issued a circular simplifying operational requirements for granting “accredited investor” status in the alternative investment fund (AIF) framework, including changes affecting AIF managers and recognised accreditation agencies. Pending receipt of an accreditation certificate, an AIF investment manager may finalise or execute a contribution agreement and begin related operational procedures based on its own eligibility assessment, but the investor’s commitment cannot be counted in the scheme’s corpus until the certificate is obtained and funds may be received only after accreditation is confirmed. For accreditation based on net-worth criteria, SEBI has removed the requirement to submit a detailed net-worth break-up as an annexure to the net-worth certificate and clarified that it is optional for the chartered accountant to state the actual net worth while certifying that the applicable threshold is met. The circular applies with immediate effect, and the trustee, sponsor or manager (as applicable) must ensure the manager’s Compliance Test Report includes compliance with these requirements.

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