SEBI has simplified the process of becoming an Accredited Investor (AI), making it easier for eligible investors to access products such as Alternative Investment Funds (AIFs), Specialized Investment Funds (SIFs) and Portfolio Management Services (PMS).
Under the revised framework issued on 5 November 2026, you no longer need to depend solely on a recognised Accreditation Agency to obtain your accreditation. Eligible fund managers and portfolio managers can now verify your financial eligibility and recognise you as an Accredited Investor directly.
Who is an Accredited Investor?
An Accredited Investor is an individual or entity recognised as having the required financial strength, investment experience or securities market exposure to participate in certain specialised investment products.
This status allows eligible investors to access investment opportunities such as AIFs, SIFs and PMS, subject to the applicable eligibility and product requirements.
Your fund manager can now certify your accredited status
If you meet the prescribed eligibility criteria, the manager of an AIF, the asset management company of a SIF or a portfolio manager can verify your financial details and determine your accredited status.
This can be done either when you first invest or during the tenure of the scheme. The existing route through a recognised Accreditation Agency will also continue to be available.
Your accreditation will be valid for three years
Whether your accreditation is granted by a fund manager or a recognised Accreditation Agency, it will remain valid for three years from the date of accreditation.
If you qualify as an Accredited Investor when you join a scheme, you will continue to be treated as one for the remaining life of that scheme. If you invest with another manager outside the same corporate group, your eligibility will need to be assessed afresh.
What investments count towards your eligibility?
SEBI has clarified which investments can be considered when calculating your securities market exposure.
The minimum qualifying exposure is:
- ₹5 crore for individuals, Hindu Undivided Families (HUFs), family trusts and sole proprietorships.
- ₹20 crore for companies and trusts other than family trusts.
Your qualifying securities market exposure can include:
- Listed securities held in demat accounts.
- Mutual fund investments held through mutual fund folios.
- Unlisted securities held in demat form.
- Investments in overseas securities markets.
- Investments under the National Pension System (NPS).
For certain unlisted and overseas investments that are not reflected in your eCAS statement, you may need a valuation certificate from a practising Chartered Accountant.
What should you know before applying?
If a manager certifies your accredited status, it must maintain supporting documents and verification records. It must also follow an accreditation policy covering conflict-of-interest controls, internal audits and investor grievance redressal.
Your accredited status will be recognised across managers belonging to the same corporate group during its validity period. Investment Advisers and Research Analysts can rely on such a valid determination within their group but cannot independently certify your status.
What does this mean for you?
If you are an affluent investor exploring AIFs, SIFs or PMS, these changes could make the accreditation process simpler and faster.
The inclusion of mutual funds, overseas investments and NPS in qualifying securities market exposure also gives you a wider range of investments to demonstrate your eligibility.
However, becoming an Accredited Investor does not automatically make every investment suitable for you. You should still evaluate the investment’s risk, liquidity, costs, lock-in period and suitability for your financial goals before investing.
