SEBI simplifies accreditation requirements for AIF investors

The Securities and Exchange Board of India (SEBI) has, vide its circular dated January 9, 2026, (Circular), further streamlined the accreditation process introduced for Alternative Investment Fund (AIF) investors through amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012 (AIF Regulations) notified on December 18, 2023, while seeking to preserve prudential safeguards that are linked to the corpus of such AIF schemes.

Key highlights of the Circular are outlined below:

1. Execution of contribution agreements pending formal accreditation: SEBI has permitted investment managers to finalise and execute contribution agreements and to initiate related operational procedures in respect of prospective accredited investors based on the investment manager’s own assessment of the investor’s eligibility pending receipt of an accreditation certificate from a recognised accreditation agency by the investor. This relaxation is, however, subject to the following safeguards:

• • • Any commitment made by such an investor shall not be included in the calculation of the corpus of the scheme until the investor obtains an accreditation certificate from an accreditation agency. This is intended to preserve the sanctity of prudential norms under the AIF Regulations and the Master Circular for AIFs dated May 7, 2024 (Master Circular) (that are based on the size of the corpus).

• • • AIF schemes are prohibited from receiving funds from such investors until they have obtained an accreditation certificate.

2. Rationalization of net-worth documentation for accreditation: Accreditation based on net-worth criteria is governed by Annexure A under “Annexure 8: Modalities of Accreditation” in the Master Circular.  Previously, where accreditation was sought on the basis of net worth, the calculation of net worth was required to be furnished as an annexure to the net-worth certificate. In light of industry feedback and representations made by market participants, SEBI has dispensed with the mandatory requirement to submit a detailed break-up of net worth as an annexure to the net-worth certificate. 

SEBI has further clarified that it is optional for a practicing Chartered Accountant to specify the actual quantum of net worth in the net-worth certificate. The Chartered Accountant is required to certify whether the applicant meets the stipulated net worth threshold with disclosure of the precise net-worth figure being optional. SEBI has issued a modified Annexure A setting out the updated list of documents to be furnished for accreditation applications.

Further, the Circular, effective immediately, reiterates that the latest net-worth certificate shall not be older than six months.

Conclusion:

The Circular reflects SEBI’s continuing efforts towards fine-tuning the accredited investor regime for AIFs by simplifying documentation and permitting conditional flexibility to investment managers, while preserving the integrity of corpus-linked prudential norms and embedding accreditation checks into AIFs’ regular compliance framework.