SEBI Eases Accredited Investor Norms for AIF Participation

The Securities and Exchange Board of India has issued a circular dated January 9, 2026, simplifying the accreditation framework for investors in Alternative Investment Funds (AIFs). The revised norms allow AIF managers, pending receipt of an accreditation certificate, to execute contribution agreements and initiate operational processes based on their assessment of investor eligibility, subject to safeguards. Investor commitments made during this interim period cannot be counted towards the scheme’s corpus, and funds can be accepted only after accreditation is formally granted. SEBI has also eased net-worth documentation requirements by removing the mandatory submission of a detailed net-worth break-up annexed to the certificate. Chartered accountants may now optionally specify the actual net worth, provided they certify that the prescribed threshold is met. The circular further requires trustees, sponsors, or managers to ensure compliance with these provisions in the Compliance Test Report. The changes take immediate effect and aim to streamline processes while preserving prudential safeguards.

Securities and Exchange Board of India

PR No.05/2026

SEBI issues Circular on ‘’Simplification of requirements for grant of accreditation to investor”

SEBI has simplified the requirements for grant of accreditation to investors based on industry feedback.

To ensure ease of doing business, SEBI has permitted investment manager of AIFs to raise commitment, pending receipt of certificate from an accreditation agency, based on investment manager’s assessment of an investor’s eligibility.

SEBI has also done away with requirement to give detailed break-up of net worth and made it optional for the certifying chartered accountant to specify the actual net-worth in the net- worth certificate.

The Circular issued today can be accessed on the SEBI website www.sebi.gov.in under the link Legal -> Circulars.

Mumbai
January 09, 2026

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Securities and Exchange Board of India

Circular No. HO/19/34/11(9)2025-AFD-POD1/I/2286/2026 January 09, 2026

To,
All Alternative Investment Funds (AIFs),
All recognized accreditation agencies

Sir/Madam,

Sub: Simplification of requirements for grant of accreditation to investors

1. Accredited investor framework was introduced by way of amendment in SEBI (AIF) Regulations 2012 [“AIF Regulations”], notified on August 03, 2021. Further, various modalities in this regard were specified vide SEBI circular dated August 26, 2021 [subsumed in Chapter 12 of master circular for AIFs dated May 07, 2024 (“master circular)]. Subsequently, simplification requirements for grant of accreditation to investors were issued vide SEBI Circular SEBI/HO/AFD/PoD1/2023/189 dated December 18, 2023.

2. In this regard, the following has been decided:

2.1. Pending receipt of certificate from an accreditation agency, based on the investment manager’s assessment of the investor’s eligibility criteria, the investment manager may finalise/execute the contribution agreement, and initiate related operational procedures, subject to the following conditions –

2.1.1. Any commitment made by such investor shall not be included in calculation of corpus of the scheme until such investor obtains accreditation certificate from an accreditation agency. This is to maintain sanctity of several prudential norms for AIFs which are based on corpus.

2.1.2. Schemes of AIFs shall receive funds from such investors only after they obtain accreditation certificate from an accreditation agency.

2.2. In reference to accreditation based on net-worth criteria, as per Annexure A under ‘Annexure 8 of master circular: modalities of accreditation’, it has been mandated that calculation of net worth shall be given as an Annexure to the net worth certificate. Based on market representation, it has been decided that the requirement of submitting detailed break-up of net worth (as Annexure to net worth certificate) shall be done away with. Further, it is being clarified that it is optional for the chartered accountant to specify the actual net-worth in the net-worth certificate, while certifying whether it meets the specified threshold. Considering the same, the modified Annexure A is placed alongside.

3. The trustee/sponsor/manager of AIF, as the case may be, shall ensure that the ‘Compliance Test Report’ prepared by the manager in terms of Chapter 15 of Master Circular for AIFs, includes compliance with the provisions of this circular.

4. This circular shall come into force with immediate effect.

5. This circular is issued with the approval of the competent authority.

6. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulations 2(1)(ab) and 36 of AIF Regulations, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

7. The circular is available on SEBI website at sebi.gov.in under the categories “Legal framework – Circulars” and “Info for – Alternative Investment Funds”.

Yours faithfully,

Anshul Jagdish Goyal
Deputy General Manager
Tel no.: +91-22-26449389
anshulg@sebi.gov.in

Annexure A. – List of Documents to be submitted by applicant for accreditation The Applicant shall furnish self-certified copies of the following documents:

*Accreditation Agency may seek other documents to verify the genuineness of the information/documents submitted by the applicants and in cases where the information submitted by applicants appears to be contradicting/suspicious /fictitious.

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