Accredited investor India: who qualifies under SEBI rules

SEBI now draws a line between investors who may join an angel fund and those who may not. The line is a certificate, it expires, and from 31 March 2027 every angel fund has to respect it.

The rule arrived in two steps. Since SEBI's circular of 10 September 2025, new angel funds may take money only from accredited investors. Older funds got a transition: at most 200 non-accredited investors, and a deadline that a September 2026 circular pushed to 31 March 2027. If you write angel cheques through a fund, you'll need to know which side of the line you're on. For where angel funds sit in the wider flow of money, start with how capital moves in India in 2026.

Who qualifies as an accredited investor in India

An individual in India qualifies as an accredited investor by income, by net worth or by a mix of both, under SEBI's August 2021 framework. Companies and trusts qualify on net worth alone. Your home doesn't count: the value of your primary residence is left out when net worth is calculated, so the test is about money you could actually invest.

The criteria sit in SEBI's circular on the modalities of accreditation. For individuals, HUFs, family trusts and sole proprietorships, you need one of these:

• annual income of ₹2 crore or more;
• net worth of ₹7.5 crore or more, of which at least ₹3.75 crore is in financial assets; or
• annual income of ₹1 crore and net worth of ₹5 crore, with at least ₹2.5 crore in financial assets.

Body corporates and trusts other than family trusts need net worth of ₹50 crore. A partnership firm qualifies only if each partner qualifies on their own. That's the whole test. It's narrow on purpose.

How accreditation works

You don't declare yourself accredited. You apply to an accreditation agency recognised by SEBI, with your income tax returns or a net worth certificate, and it issues a certificate carrying your PAN, its own name and a start and end date. Funds then rely on that certificate.

The certificate expires

If you met the criteria in the preceding year, your certificate is valid for one year. Met them in each of the preceding three years? It's valid for two. That matters more than it sounds. Under the September 2025 angel fund circular, a fund manager must check that you hold a valid certificate at the time it accepts your contribution for each investee company. So an expired certificate can keep you out of a deal you'd already said yes to.

Consent, and taking it back

Accreditation also needs your consent to be treated as an accredited investor by a particular fund or portfolio manager. You can withdraw that consent later. But if you used a lower minimum ticket while accredited, the 2021 circular says you'll have to top the investment up to the normal minimum.

What changed in 2026

SEBI's board approved a wider set of routes into accreditation at its meeting in September 2026. Fund managers may assess accreditation themselves, valid for three years, and a new test lets individuals qualify on securities-market assets alone. None of it applies until SEBI amends the regulations and circulars.

According to a Lakshmikumaran and Sridharan note from October 2026, the approved changes include:

• Manager-led accreditation. An AIF, SIF or PMS manager may record your accredited status at onboarding, valid for three years and usable across that manager's group.
• A securities-market assets test. ₹5 crore for individuals, HUFs, family trusts and sole proprietorships; ₹20 crore for body corporates.
• Deemed status for non-residents. Every person resident outside India counts as accredited, with no separate certificate.
• LLPs. An LLP qualifies if every partner does.

How many people could that reach? Business Today reported in August 2026 that SEBI's consultation paper estimated the eligible pool could grow to around 4 lakh. Treat it as SEBI's estimate, not a count. India publishes no count of certificates issued.

What the US experience suggests

Fixed thresholds widen the pool as incomes rise. In the US, where the rupee doesn't apply and the rules differ, a staff review by the SEC found the share of households meeting its accredited investor tests rose from 1.8% in 1983 to 18.5% in 2022.

The SEC staff review from December 2023 put that at 24.3 million households, and said the growth was largely because the dollar thresholds had never been adjusted for inflation. That's a US finding about a US rule. India's thresholds are newer and its incomes are different. The lesson still travels, though: a rupee line set in 2021 will let in more people every year it stays put.

Accreditation is a certificate with an end date. Treat it like your passport, not like your PAN.

What to do next

If you invest through an angel fund, check three things this quarter: whether you qualify, when your certificate ends, and whether your fund registered before or after 10 September 2025. Read the SEBI circulars linked above for the exact wording. This post explains the rules; it isn't advice on whether to invest.

For how angel funds and AIFs differ, see angel funds and AIFs explained, and for how a lead and backers split a cheque, read how angel syndicates work in India. When you're ready to look at companies, MyStartupValley gives you a dedicated workspace with startups evaluated on six due diligence parameters, with sector and stage fit. See the investor workspace.

Questions

Who is an accredited investor in India?

Under SEBI's 2021 framework, an individual, HUF, family trust or sole proprietorship qualifies with annual income of at least Rs 2 crore, or net worth of at least Rs 7.5 crore with Rs 3.75 crore in financial assets, or income of Rs 1 crore plus net worth of Rs 5 crore. Body corporates need net worth of Rs 50 crore.

How do you become an accredited investor in India?

You apply to an accreditation agency recognised by SEBI with proof of income or net worth. If you meet the criteria for the preceding year, the certificate is valid for one year; if you met them in each of the preceding three years, it's valid for two. Your primary residence doesn't count toward net worth.

Do you need to be accredited to invest in an angel fund?

For angel funds registered after 10 September 2025, yes. Older angel funds may offer deals to at most 200 non-accredited investors until 31 March 2027, under a SEBI circular of September 2026. After that date they can't take contributions from non-accredited investors for new investments.

What did SEBI change about accredited investors in 2026?

SEBI's board approved changes in September 2026: fund managers may assess accreditation themselves, valid for three years, and individuals may qualify with Rs 5 crore in securities-market assets. These apply only after SEBI amends its regulations and circulars, so check the current rules before you rely on them.

Sources: SEBI, Modalities for implementation of the framework for Accredited Investors, circular, 26 Aug 2021 · SEBI, Revised regulatory framework for Angel Funds under AIF Regulations, circular, 10 Sep 2025 · SEBI, Relaxation in timeline with respect to Accredited Investor mandate for Angel Funds, circular, 7 Sep 2026 · Lakshmikumaran and Sridharan, SEBI's Board approves changes to the regulatory framework for Accredited Investors, 13 Oct 2026 · Business Today, SEBI proposes Rs 5 crore asset test for accredited investors, 13 Aug 2026 · US SEC staff, Review of the Definition of Accredited Investor, 14 Dec 2023