SEBI Eases Accredited Investor Rules for SIFs, AIFs and Portfolio Managers

Key Takeaways

• SEBI announced revisions to the accredited investor framework on 5 November 2026, extending verification responsibilities to eligible fund managers.
• AIF managers, SIF asset management companies and portfolio managers can assess whether investors satisfy the prescribed accreditation criteria.
• The changes simplify the accreditation process while retaining eligibility, documentation and regulatory compliance requirements.

SEBI Introduces Alternative Investor Accreditation Route

SEBI has revised the accredited investor framework, allowing eligible investment managers to assess and establish the accreditation status of investors.

The changes were announced through a circular issued on 5 November 2026.

The revised procedure applies to Alternative Investment Funds (AIFs), Specialised Investment Funds (SIFs) and portfolio management services (PMS).

Under the framework, eligible managers can determine whether applicants meet the prescribed accreditation criteria without requiring every applicant to obtain accreditation exclusively through an external agency.

The regulator has retained the underlying eligibility requirements.

How Will the Accreditation Process Work?

Accredited investor status recognises investors who satisfy specified financial eligibility criteria.

Under the new process, eligible fund managers may assess accreditation during onboarding or subsequently, in accordance with the regulatory framework.

Managers must verify the information used to determine eligibility and preserve appropriate records supporting the assessment.

The revised rules also address the duration and recognition of accreditation within eligible corporate groups.

This can reduce repeated documentation where an investor is accessing products managed by related entities.

However, accreditation does not automatically permit investment in every regulated product.

Separate product eligibility conditions, minimum investment amounts and other restrictions continue to apply.

What Does This Mean for Specialised Investment Funds?

SIFs operate under a regulatory structure designed for investment strategies that differ from conventional retail mutual fund products.

SEBI's decision allows eligible AMCs operating SIFs to undertake investor accreditation assessments under the revised process.

This expands the available verification mechanism for accessing products where accredited investor status is relevant.

AIF and PMS managers also receive additional flexibility in onboarding eligible clients.

The changes are primarily administrative and regulatory. They do not modify a scheme's underlying investment objective or guarantee any investment outcome.

Compliance Requirements Continue

The revised framework does not remove requirements relating to anti-money laundering checks, client identification or supporting documentation.

Managers remain responsible for complying with the applicable regulatory conditions.

The changes should therefore be understood as an additional mechanism for verifying accredited investor status, rather than a removal of investor eligibility safeguards.

SEBI's circular dated 5 November 2026 provides the governing framework for implementation.