The Securities and Exchange Board of India (SEBI) on November 05, 2026, has prescribed modalities for implementing the amended SEBI (Alternative Investment Funds) Regulations, 2012, to simplify and expedite the investor accreditation process. The circular introduces an optional Manager-led accreditation mechanism, allowing the manager of an Alternative Investment Fund (AIF), asset management company of a Specialized Investment Fund (SIF), or portfolio manager to determine and record an investor’s accredited status after verifying the prescribed eligibility criteria. Such accreditation shall be recognised across managers within the same corporate group. However, Investment Advisers and Research Analysts cannot independently determine accreditation status but may rely on a valid determination made by a manager within their group. The existing Accreditation Agency route will continue to remain available.
Manager-led accreditation and certificates issued by recognised Accreditation Agencies shall generally remain valid for three years from the date of accreditation. Fresh accreditation will be required when an investor is onboarded by a manager outside the existing group. Investors accredited at the time of onboarding shall retain their status for the remaining life of the scheme. The minimum qualifying securities market exposure has been prescribed at ₹5 crore for individuals, HUFs, family trusts and sole proprietorships, and ₹20 crore for body corporates and other trusts. Eligible investments include dematerialised securities, mutual funds, unlisted securities, overseas securities and National Pension System investments.
Managers undertaking accreditation must maintain supporting records and verification evidence for at least five years, conduct periodic internal audits and compliance reviews, and adopt an accreditation policy covering conflict-of-interest controls, grievance redressal, data privacy and cybersecurity. Eligibility verification must be supported by prescribed documents, including income tax returns, audited financial statements, net-worth certificates or eCAS statements, as applicable. Further, an LLP shall qualify as an Accredited Investor only where each partner independently satisfies the applicable eligibility criteria. Persons Resident Outside India shall be deemed Accredited Investors without requiring accreditation certificates or manager-led accreditation, subject to applicable KYC, beneficial ownership and anti-money laundering obligations. The circular is effective immediately, and the SEBI Master Circular for AIFs dated June 03, 2026 has been updated accordingly.
[Circular No. HO/19/34/11(6)2026-AFD-POD1/I/25244/2026]
