SEBI Proposes ₹5-Crore Securities Asset Route For Accredited Investor Status
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SEBI has proposed an asset-based accreditation route, potentially expanding the Accredited Investor pool, simplifying AIF access for NRIs and OCIs, and introducing manager-led accreditation with three-year validity.
The threshold for becoming an Accredited Investor (AI) could look different if a proposal from the Securities and Exchange Board of India (SEBI) goes through. The market regulator is considering whether an individual's holdings in the securities market should also count towards eligibility, alongside the income and net-worth tests already in place.
The proposed cut-off is ₹5 crore of securities-market assets for individuals and ₹20 crore for body corporates. SEBI has put the idea out for public consultation as part of a wider review of the accredited investor framework.
What Could Change For Investors?
At present, accreditation is linked to income and net-worth thresholds. SEBI's proposed asset-based route would add a third way of qualifying, based on the value of securities-market assets held by an investor.
The regulator estimates that the potential pool of Accredited Investors could rise to around 4 lakh under the proposed framework. That compares with an existing investor base of about 1 lakh.
The change could therefore bring more investors into the accredited category, including those who may not qualify through the existing income or net-worth criteria but have substantial investments in the securities market.
Manager-Led Accreditation Proposed
SEBI is also looking at changes to the accreditation process itself.
One proposal is to allow manager-led accreditation alongside the existing route through accreditation agencies. The regulator is also considering accreditation at the group level, which could reduce the need for investors belonging to the same group to go through separate accreditation procedures.
The consultation paper proposes a three-year validity period for accreditation based on the latest documents submitted by the investor.
NRIs, OCIs Could Get Easier AIF Access
Another proposal covers investors living outside India. SEBI wants the deemed Accredited Investor category to include all Persons Resident Outside India (PROI) under the Foreign Exchange Management Act, 1999. That would bring NRIs, OCIs and other PROIs within the scope of the change.
For these investors, the move could make access to Alternative Investment Funds (AIFs) simpler by removing the need for a separate minimum threshold under the accredited investor route.
The proposals are still at the consultation stage. SEBI has invited comments from stakeholders until 3 September 2026, and the suggestions will have to go through the regulatory process before any of them become final rules.
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