SEBI Proposes Adding Securities-Market-Assets Criterion For Accredited Investor Status

Markets regulator Securities And Exchange Board of India (SEBI) on Thursday proposed adding a securities-market-assets criterion for accredited investor status, under which individuals with such assets of at least Rs 5 crore could qualify irrespective of the existing income or net-worth criteria, a move aimed at widening the investors' pool.

For body corporates and trusts other than family trusts, SEBI has proposed a threshold of Rs 20 crore in securities-market assets.

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The proposal is aimed at widening the pool of investors eligible for accredited investor status and, consequently, encouraging greater participation in alternative investment funds (AIFs), the SEBI said in its consultation paper.

According to SEBI's analysis, as of April 30, 2026, around 3.7 lakh investors could qualify under the proposed securities-market-assets criterion. This is nearly four times the current AIF investor base of around 96,000, indicating the potential for a significant expansion in the pool of eligible investors.

SEBI said the proposed threshold would ensure that eligible investors have sufficient financial wherewithal and that a substantial population of them has the willingness to take risk, as indicated by an analysis of securities-market holdings and the percentage of option traders.

At present, individuals, Hindu Undivided Families, family trusts and sole proprietorships qualify as accredited investors if they meet any of the prescribed income or net-worth criteria. These include annual income of at least Rs 2 crore; net worth of at least Rs 7.5 crore, of which at least Rs 3.75 crore is in financial assets; or annual income of at least Rs 1 crore and a net worth of at least Rs 5 crore, with at least Rs 2.5 crore in financial assets.

Under the proposed framework, securities-market assets that could be counted would include equity and debt instruments, REITs and InvITs, AIF units and other securities held in dematerialised form.

Mutual fund investments held through folios, futures open-interest positions, unlisted securities held in dematerialised form and overseas securities-market investments would also qualify.

SEBI has also proposed allowing investment managers to determine and record an investor's accredited status while onboarding them into an investment product. Such accreditation could be recognised at the group-entity level across investment vehicles including AIFs, specialised investment funds (SIFs) and portfolio management services (PMS).

For verification, investors would be required to furnish the latest income-tax return for income-based eligibility. Net worth could be established through a certificate from a practising chartered accountant not older than six months.

For securities-market assets, investors could submit an eCAS summary statement generated by depositories or a broker statement not older than six months, or a certificate from a practising chartered accountant.

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SEBI has also proposed that all Persons Resident Outside India (PROIs), including foreign portfolio investors, may be treated as deemed accredited investors under the framework.

The proposals are part of Sebi's review of the accredited investor framework and comments have been sought till September 3 on the suggestions.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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