SEBI has revised the accredited investor framework, introducing manager-led verification, three-year validity, and simplified documentation. The changes aim to streamline investor onboarding while maintaining regulatory safeguards.
SEBI Revises Accredited Investor Framework
On 5 November 2026, SEBI issued a circular revising the accredited investor framework, introducing manager-led accreditation, a three-year validity period, and a ₹5 crore exposure threshold for eligibility. The framework now allows designated managers to verify investor credentials, reducing dependency on third-party documentation and expediting compliance.
Key changes include acceptance of a track record of investing ₹5 crore or more in securities as a criterion for accreditation, alongside existing income and asset-based tests. The requirement for physical verification has been relaxed, permitting Video Interactive Person Verification (VIPV) and reliance on KYC Registration Agencies (KRAs) or CKYC records, subject to risk profiling.
These reforms are integrated into the updated AIF Master Circular and are expected to enhance market participation by qualified investors, reduce onboarding costs, and align with international best practices in investor categorisation. Practitioners must ensure compliance with revised record-keeping and periodic updating obligations under the new regime.