SEBI Proposes ₹5 Crore Asset Threshold for Accredited Investors

The Securities and Exchange Board of India (SEBI) has proposed a significant revision to its accredited investor framework, introducing securities market assets as an additional eligibility criterion. This move aims to broaden the definition of accredited investors, as detailed in a consultation paper released on August 13, 2026.

New Eligibility Criteria Proposed

Under the new guidelines, individuals would need at least ₹5 crore in securities market assets to qualify for accreditation. For body corporates, a minimum of ₹20 crore in securities market assets would be required. These criteria are in addition to existing income and net-worth-based requirements.

Broadening the Investor Base

SEBI anticipates these changes could significantly expand the pool of eligible accredited investors. The current framework for alternative investment funds (AIFs) engages a smaller base of approximately 100,000 investors. The proposed revisions could increase this number to around 400,000 eligible accredited investors.

Streamlining Accreditation Processes

Further simplifications are also proposed to make the accreditation process more efficient and user-friendly. One such measure involves allowing manager-led accreditation, which would be valid at the group level. Additionally, the accreditation validity period would be streamlined to three years, based on the latest documentation.

Boosting International Participation

To enhance global engagement, SEBI plans to expand the scope of deemed accredited investors. This includes encompassing all persons resident outside India (PROI). This broad category covers Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).

This expansion would allow overseas investors to commit to Alternative Investment Funds (AIFs) without a minimum threshold. The initiative aims to make Indian alternative investment products more accessible globally.

Wider Impact of the Framework

The accreditation framework has grown in importance across various investment vehicles within the Indian financial ecosystem. Its benefits now extend beyond just AIFs. These include Specialized Investment Funds (SIFs), Mutual Funds, Portfolio Management Services (PMS), and Angel Funds.

These proposed changes represent a comprehensive effort to refine and expand the reach of India’s accredited investor framework, adapting it to evolving market needs and fostering broader participation.