SEBI has overhauled the accredited investor framework, introducing manager-led accreditation, three-year validity, and a ₹5 crore exposure criterion, effective November 2026.
SEBI Overhauls Accredited Investor Regime
On 5 November 2026, SEBI revised the accredited investor framework under its updated AIF Master Circular, enabling manager-led accreditation for investors, thereby streamlining due diligence while ensuring risk suitability. The new norms introduce a three-year validity for accreditation status and mandate that investors must have exposure to securities of at least ₹5 crore to qualify.
The revised framework simplifies verification mechanisms and integrates with the GARUDA compliance monitoring system. These changes aim to enhance access for sophisticated investors while strengthening oversight over Alternative Investment Funds (AIFs). Intermediaries are now required to maintain robust records and perform periodic reviews under the updated due diligence standards.
Practitioners must align fund documentation and onboarding protocols with the updated Master Circular. The reforms signal greater regulatory trust in fund managers’ risk assessment capabilities while reinforcing investor protection in high-value investment channels.