SEBI has updated the accredited investor regime with manager-led verification, a three-year validity period, and revised eligibility criteria including a ₹5 crore investment exposure threshold.
SEBI Revises Accredited Investor Framework
Effective 5 November 2026, SEBI has revised the accredited investor framework to simplify onboarding and expand access while enhancing due diligence. The updated guidelines permit investment managers to conduct verification instead of mandating chartered accountants or company secretaries, provided robust internal controls and audit trails are maintained.
Key changes include a three-year validity for accredited investor status, subject to periodic review, and the introduction of a new eligibility criterion: individuals or entities with demonstrated exposure to securities investments of at least ₹5 crore. Documentation standards have been streamlined, allowing digitally authenticated records, and intermediaries must maintain records in compliance with CKYCRR and KRA frameworks.
These amendments, incorporated into the updated AIF Master Circular and SEBI circular dated 5 November 2026, aim to ease fundraising for Alternative Investment Funds (AIFs) and REITs/InvITs. For practitioners, this reduces client onboarding friction but increases the compliance burden on managers to ensure accurate classification and record retention.
Citations
- SEBI Circular No. CIR/CFD/DIL/12/2026, 5 November 2026
