India’s markets regulator, SEBI, has unveiled a plan to broaden the recognised criteria for accredited investors, potentially increasing eligible participants from 100,000 to 400,000 and facilitating greater access to private-market products.
India’s markets regulator has proposed a broader route to accredited-investor status that could lift the eligible pool to about 400,000 people and entities, a sharp increase from the roughly 100,000 investors currently in the alternative investment fund base, according to the Securities and Exchange Board of India. SEBI said the change would add securities market holdings as a fresh qualification route, alongside the existing income and net-worth tests.
Under the consultation paper, individuals with securities market assets of at least ₹5 crore and corporate bodies with such assets of at least ₹20 crore could qualify, even if they do not meet the current income or net-worth thresholds. SEBI said the aim is to reflect the growing role of accreditation across alternative investment funds, specialised investment funds, portfolio management services and angel funds.
The regulator is also seeking to make accreditation easier to obtain and use. One proposal would allow managers to handle accreditation directly, rather than relying only on accreditation agencies, while another would extend the validity of accreditation to 3 years based on the latest documents. SEBI said it is also considering a more streamlined route for people resident outside India, including non-resident Indians and overseas citizens of India, so they can invest in AIFs without a minimum threshold.
The consultation is the latest in a series of moves by SEBI to widen access to private-market products. In February 2025, the regulator proposed bringing accredited investors into angel funds for the limited purpose of such investments, and later in 2025 it floated lighter rules for AIFs focused solely on accredited investors as well as lower entry requirements for large value funds. SEBI has invited public comments on the latest paper until September 3, 2026.
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