Most people hear “accredited investor” and assume it is a badge for the ultra-rich. It is closer to a pass. SEBI is telling a fund manager, “This person can handle riskier, less regulated products, and we will let you treat them accordingly.” Since 5 November 2026, getting that pass has become much easier.
Who is an accredited investor?
An accredited investor is a person or entity that SEBI considers financially capable and informed enough to invest in products with lighter regulatory protection. These are mainly Alternative Investment Funds (AIFs), Specialised Investment Funds (SIFs) and Portfolio Management Services (PMS).
The logic is simple. A retail investor in a mutual fund gets heavy protection: disclosures, diversification rules, daily NAV. A sophisticated investor in a niche AIF strategy can trade some of that protection for flexibility. SEBI wants proof that the investor can absorb a loss before it allows that trade.
What are the criteria?
There are now three ways to qualify. Meeting any one is enough.
- Income. For individuals, HUFs, family trusts and sole proprietorships, the long standing test is annual income of ₹2 crore or more.
- Net worth. The long-standing test is net worth of ₹7.5 crore or more, with at least ₹3.75 crore in financial assets. A combined route also exists: ₹1 crore income plus ₹5 crore net worth, with ₹2.5 crore in financial assets. Body corporates and trusts other than family trusts need net worth of ₹50 crore.
- Securities market exposure (new). This is the headline change. You qualify if your holdings in the securities market reach:
- ₹5 crore for individuals, HUFs, family trusts and sole proprietorships
- ₹20 crore for body corporates and trusts other than family trusts
Here is what counts as exposure:
- Securities held in demat form
- Mutual fund investments held through folios
- Unlisted securities held in demat form
- Overseas securities
- NPS investments
This matters because many successful investors are asset-rich but income-light. A retiree with a ₹6 crore mutual fund and equity portfolio and modest annual income would have failed the old tests. Now that person can qualify on exposure alone.
Two groups sit outside this table. Non-resident Indians and other Persons Resident Outside India are deemed accredited, with no certificate needed. An LLP qualifies only if every partner independently meets the criteria.
What exactly changed?
Earlier, you had to get a certificate from a recognised accreditation agency. That route still exists. But now the manager of an AIF, the AMC of a SIF, or a portfolio manager can verify you directly, at onboarding or during the life of a scheme.
The key points:
- Accreditation is valid for three years.
- A determination by one manager is recognised across other managers in the same corporate group. Move to a manager outside the group and you are assessed afresh.
- If you hold a valid agency certificate, the manager must rely on it.
- If you are accredited when you enter a scheme, you stay accredited for that scheme’s remaining life.
- Certificates issued before 5 November remain valid until they expire.
How will it be verified?
You will not be taking the manager’s word for it, and neither will SEBI. The documents are specific:
- Income: your latest income tax return, or a CA certificate.
- Net worth: audited financials, or a CA net worth certificate not older than six months.
- Securities market exposure: an eCAS statement from a depository, not older than six months. For unlisted or overseas holdings, a practising CA certificate stating the nature, valuation date, and value.
Managers must keep these records for at least five years, run internal audits, and adopt a policy that separates the accreditation function from sales. That last point matters. It tries to stop a manager from “accrediting” someone simply because they want the money.
What are the benefits of getting accredited?
Lower entry tickets. AIFs normally need a minimum of ₹1 crore, and PMS a minimum of ₹50 lakh. Schemes open only to accredited investors can relax these minimums. Whether they do is the manager’s choice, so check each product.
Access to accredited investor-only schemes. These carry lighter regulatory requirements, which lets managers run more flexible strategies. Some products simply cannot be offered to anyone else.
Co-investment opportunities. Managers can offer accredited investors co-investment routes alongside the main fund, often with lower fee drag.
Portability across products. Under manager-led accreditation, one assessment works across the AIF, SIF and PMS arms of the same group for three years. That means less paperwork and faster onboarding when you want to add a strategy.
Reduced dependence on agencies. Fewer intermediaries means fewer delays.
The risks
Accredited does not mean protected. It means the opposite: you are accepting less protection. Lighter regulation can mean concentrated portfolios, illiquidity, longer lock-ins, and higher fees. Qualifying for a product is not a reason to buy it.
Also watch the conflict of interest. Manager-led accreditation lets the seller verify the buyer. SEBI’s safeguards are sensible on paper, but you should ask any manager how its accreditation team is separated from its sales team.
Our take
The exposure test is the most meaningful change. It recognises that a diversified portfolio of mutual funds and equities is evidence of financial capability, not just a high salary. If you hold ₹5 crore or more in market linked assets, check your latest eCAS and ask your manager about accreditation. Do it because you have found a strategy you understand, not because you can now qualify.
