Today, SEBI has issued a consultation paper for a comprehensive review of the existing AI framework based on the suggestions received from various stakeholders and the recommendations of SEBI’s Alternative Investment Policy Advisory Committee (AIPAC).
SEBI proposes to introduce securities market assets (with eligibility threshold is INR 5 crore for individuals and INR 20 crore for body corporates) as an additional eligibility criterion for accreditation, alongside the existing income and net-worth based criteria. This one proposal itself, has the potential to expand the pool of eligible Accredited Investors to around 4 lakh, compared to the existing AIF investor base of around 1 lakh.
Other proposals include simplifying the onboarding process through manager led accreditation (which will be valid at a group level), in addition to the existing Accreditation Agency route; Streamlining the validity of accreditation as 3 years on the basis of latest documents;
SEBI also proposes to bring global inclusivity by expanding the scope of deemed Accredited Investors to cover all Persons Resident Outside India (PROI), as defined under the Foreign Exchange Management Act, 1999. This will enable all NRIs, OCIs and all other persons resident outside India to invest in AIFs more seamlessly without minimum threshold.
Since its introduction, accreditation has assumed increasing significance within the AIF ecosystem, with its benefits now extending across AIFs, Specialised Investment
Funds (SIFs) of Mutual Funds, Portfolio Management Services (PMS) and Angel Funds.
The Consultation Paper is placed on the SEBI website at the following link: https://www.sebi.gov.in/reports-and-statistics/reports/aug-2026/consultation-paper-on-review-of-accredited-investor-framework_103550.html
Comments are invited on the above Consultation Paper. The last date to submit comments is September 03, 2026.
Mumbai
Radhika Goyal is Author of Taxconcept Gurugram head office, for deeply reported tax, gst and income tax articles on issues that matter. He splits her time between New Delhi and Bengaluru, and has worked as a reporter, a podcaster and an editor for publications across India.