India’s markets regulator aims to broaden access to private market investments by proposing a new eligible investor category based on securities-market assets, potentially increasing the pool from 96,000 to over 3.7 lakh investors.
India’s markets regulator has proposed a new route to accredited investor status that would be based on securities-market assets, a change that could substantially broaden access to alternative investment funds and other private market products.
According to a consultation paper released by the Securities and Exchange Board of India on Thursday, individuals with at least ₹5 crore in securities-market assets would qualify even if they do not meet the existing income or net-worth tests. For body corporates and trusts other than family trusts, the proposed threshold would be ₹20 crore.
The move would sit alongside the framework SEBI introduced in 2021, under which individuals, Hindu undivided families, family trusts and sole proprietorships can qualify through income or net-worth thresholds. Those current rules require annual income of at least ₹2 crore, or net worth of at least ₹7.5 crore with half held in financial assets, or annual income of ₹1 crore with net worth of ₹5 crore, including at least ₹2.5 crore in financial assets. Partnership firms, trusts other than family trusts and body corporates currently face a ₹50 crore net-worth test.
SEBI said the new test is intended to widen the pool of investors eligible for accredited status and, in turn, support greater participation in alternative investment funds, portfolio management services and specialised investment funds. The regulator said securities-market assets that could count towards eligibility would include equities and debt instruments, real estate investment trusts, infrastructure investment trusts, AIF units and other dematerialised securities, as well as mutual fund holdings through folios, futures open-interest positions, unlisted securities held in demat form and overseas securities-market investments.
The regulator said its analysis suggested around 3.7 lakh investors could meet the proposed securities-market-assets threshold as of April 30, 2026, compared with the current AIF investor base of roughly 96,000. SEBI said the level was meant to indicate both financial capacity and a willingness to take risk. It also proposed allowing investment managers to record accredited status at onboarding and recognise it across related investment vehicles, while verification would rely on tax returns, chartered accountant certificates, eCAS statements or broker records. The consultation is open for comments until September 3.
SEBI also proposed treating persons resident outside India, including foreign portfolio investors, as deemed accredited investors under the framework.
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