Accredited Investor in India: SEBI Eligibility, Criteria and How to Apply (2026)
By Trilithon Asset Management, SEBI-registered Portfolio Manager (INP000009898) and Category III AIF (IN/AIF3/25-26/1808) · Last updated 27 October 2026
Short answer: An accredited investor in India meets the Securities and Exchange Board of India (SEBI) financial tests and holds a certificate from a recognised agency. For individuals the routes are annual income of ₹2 crore, net worth of ₹7.5 crore with ₹3.75 crore in financial assets, ₹1 crore income with ₹5 crore net worth, or, since October 2026, ₹5 crore of securities-market exposure.
This page is the overview. For product-specific detail, go to our guide to the accredited investor framework for AIFs or the accredited investor benefits in PMS. Not sure you qualify? Check your accredited investor eligibility.
What is an accredited investor?
An accredited investor is someone the regulator treats as able to evaluate and absorb the risk of products that carry lighter regulation than mutual funds or listed shares. In India the concept was introduced by SEBI in 2021 through amendments to the SEBI (Alternative Investment Funds) Regulations, 2012, and it now sits in Regulation 2(1)(ab).
The framework is deliberately built on objective money tests rather than exams or credentials. SEBI’s reasoning is that wealth indicates both the ability to take professional advice and the capacity to bear a loss. Investors must also consent to being treated as an accredited investor, understanding that the product they are buying may not carry the same protections as products meant for ordinary investors, and they can withdraw that consent later.
What are the accredited investor eligibility criteria in India?
You can test yourself against these criteria with our accredited investor eligibility checker.
Individuals, HUFs, family trusts and sole proprietorships
| Route | Requirement |
|---|---|
| Income | Annual income of at least ₹2 crore |
| Net worth | Net worth of at least ₹7.5 crore, including at least ₹3.75 crore in financial assets |
| Income plus net worth | Annual income of at least ₹1 crore and net worth of at least ₹5 crore, including at least ₹2.5 crore in financial assets |
| Securities-market exposure (new, October 2026) | At least ₹5 crore of securities-market exposure, measured as the Securities and Exchange Board of India (SEBI) specifies |
Where joint holders are spouses, their combined income or net worth is tested. Where joint holders are parents and children, at least one person must qualify independently.
Entities
| Entity | Eligibility routes |
|---|---|
| Body corporates (other than LLPs) | Net worth of ₹50 crore, or securities-market exposure of ₹20 crore |
| Trusts other than family trusts | Net worth of ₹50 crore, or securities-market exposure of ₹20 crore |
| LLPs | Net worth of ₹50 crore, or exposure of ₹20 crore, or every partner qualifies independently |
| Partnership firms | Every partner must independently meet the criteria |
What changed in October 2026?
The SEBI (Alternative Investment Funds) (Third Amendment) Regulations, 2026 were notified on 9 October 2026 and published in the Official Gazette on 15 October 2026, when they took effect. The main changes:
- A securities-market-exposure route was added for individuals (₹5 crore) and for body corporates, LLPs and non-family trusts (₹20 crore).
- LLPs now have their own provision, including the option for every partner to qualify independently.
- Accreditation can also be granted through certain SEBI-registered or regulated entities, alongside accreditation agencies.
- The deemed-accredited provision now refers to persons resident outside India as defined under the Foreign Exchange Management Act, 1999 (FEMA).
This followed SEBI’s consultation paper of 13 August 2026, which estimated the ₹5 crore route alone could lift the eligible pool to about 4 lakh investors from an AIF investor base of roughly 1 lakh. Other proposals in that paper are separate from the notified amendment, so check the current position with your accreditation agency.
The framework behind these changes is covered in our SEBI AIF regulations and SEBI PMS regulations pages. For what changes in PMS from 1 April 2027, see the PMS accredited investor guide.
Holding ₹5 crore of investments does not by itself make you accredited. The assets must count under SEBI’s specification, and you still need accreditation.
How to become an accredited investor in India
You do not apply to SEBI directly. The process runs through a recognised accreditation agency. The agencies currently operating are CDSL Ventures Limited (CVL) and NSDL Database Management Limited (NDML), and the October 2026 amendment permits certain other regulated entities as well.
- Pick a route. Check which income, net worth or exposure test you meet, using the eligibility checker.
- Apply to a recognised agency such as CVL or NDML.
- Submit proof. For the income route, the latest income-tax return. For net worth or exposure, statements of assets and liabilities, demat holdings and similar evidence as the agency requires.
- Give consent. You confirm you understand the product may not carry the same regulatory protections.
- Receive a certificate. It is valid for 2 or 3 years, after which it must be renewed. Confirm the exact validity with the agency when you apply.
- Present it to the fund or portfolio manager when investing in a product that gives accredited-investor treatment. Once you hold a certificate, follow our how to invest steps or book a discovery call.
Benefits and what you give up
Accredited status unlocks products designed only for accredited investors, such as schemes with larger or more flexible structures, and in some products it relaxes minimum-ticket rules. Each product’s offering documents spell out the exact concession. In summary:
| Product | What accredited status changes | Detail |
|---|---|---|
| PMS | ₹50 lakh minimum relief; ₹10 crore Large Value Accredited Investor category | Accredited investor benefits in PMS |
| AIF | ₹1 crore minimum relief; ₹25 crore Large Value Fund (LVF) for accredited investors | Accredited investor framework for AIFs |
| SIF | Exempt from the ₹10 lakh minimum | See the offering documents of the SIF |
To compare the two main structures, read AIF vs PMS.
The trade-off is that you may lose some safeguards that apply to ordinary investors, including certain disclosure and ticket-size protections. Products for accredited investors can be illiquid, complex and capable of loss of capital.
How does an accredited investor in India differ from the US definition?
| India (SEBI) | United States (SEC) | |
|---|---|---|
| Source | SEBI (Alternative Investment Funds) Regulations, 2012, Regulation 2(1)(ab) | SEC Rule 501, Regulation D |
| Income test | ₹2 crore a year | $200,000 ($300,000 joint) |
| Net worth test | ₹7.5 crore, with ₹3.75 crore in financial assets | million excluding primary residence |
| Professional route | Not used; financial criteria only | Certain licences such as Series 7, 65 and 82 |
| Who certifies | SEBI-recognised accreditation agency (for example CDSL Ventures Limited (CVL) and NSDL Database Management Limited (NDML)) | Issuer verifies at the time of the offering |
Searching for accredited investor information from US sources can mislead Indian investors: US thresholds and verification rules do not apply to Indian AIFs or PMS.
Which products are open to accredited investors?
In India these include AIFs, in particular Category III AIFs, and accredited investors may receive concessions in portfolio management services and specialised investment funds (SIFs). Trilithon manages a Category III AIF focused on SME and microcap equity (₹1 crore minimum commitment; see our microcap and SME AIF strategy) and three PMS strategies (₹50 lakh minimum; see our PMS strategies). Compare them in our AIF vs PMS guide or see how to invest.
Related guides on accredited investors
- Accredited investor framework for AIFs
- Accredited investor benefits in PMS
- Accredited investor eligibility checker
- Accredited investors in AIFs: eligibility and compliance
- PMS in India · AIF vs PMS · SEBI PMS regulations · SEBI AIF regulations
Frequently asked questions
What is an accredited investor in India?
An accredited investor (AI) is an investor SEBI recognises as financially capable of handling higher-risk, less-regulated investment products such as AIFs. Eligibility rests on objective financial criteria, and the investor must be accredited by a SEBI-recognised agency or entity.
What is the income criterion for an accredited investor in India?
An individual, HUF, family trust or sole proprietorship qualifies with annual income of at least ₹2 crore. Lower-income combinations also exist: ₹1 crore income with ₹5 crore net worth, of which ₹2.5 crore is in financial assets.
What is the net worth criterion?
Net worth of at least ₹7.5 crore, including at least ₹3.75 crore in financial assets.
What changed in October 2026?
SEBI’s AIF (Third Amendment) Regulations, 2026 added a securities-market-exposure route: at least ₹5 crore for individuals, HUFs, family trusts and sole proprietorships, and ₹20 crore for body corporates, LLPs and non-family trusts, as specified by SEBI.
Do I apply to SEBI to become an accredited investor?
No. You apply to a SEBI-recognised accreditation agency such as CVL or NDML (or another entity SEBI permits), submit proof of eligibility and receive an accreditation certificate.
How long is an accreditation certificate valid?
Certificates are valid for 2 or 3 years, after which they must be renewed. Confirm the exact period with your accreditation agency.
What does accredited investor status change in a PMS?
The main relief is a lower PMS minimum of ₹50 lakh, and there is a separate ₹10 crore Large Value Accredited Investor category.
What does accredited investor status change in an AIF?
The main relief is a ₹1 crore minimum commitment, and Large Value Funds for accredited investors carry a ₹25 crore minimum.
Is an Indian accredited investor the same as a US accredited investor?
No. The US definition comes from SEC Regulation D. India’s framework is separate, set by SEBI in rupees, and is tied to AIFs, PMS and SIFs.
Can NRIs be accredited investors?
SEBI’s amendment treats persons resident outside India, as defined under FEMA, within the deemed-accredited provision. Confirm with the fund manager.
Sources
- SEBI (AIF) (Third Amendment) Regulations, 2026, notification SEBI/LAD-NRO/GN/2026/326
- SEBI press release 45/2026 and Consultation Paper on Review of the Accredited Investor Framework, 13 August 2026
- SEBI (Alternative Investment Funds) Regulations, 2012, Regulation 2(1)(ab)
This page is for information only and is not investment, tax or legal advice. Eligibility rules change; verify the latest position on sebi.gov.in or with an accreditation agency. Investments in AIFs and PMS are subject to market risks, including possible loss of principal. Past performance is not indicative of future results. SEBI registration does not guarantee performance. Read the PPM and Disclosure Document before investing. Trilithon Partners LLP (PMS, INP000009898); Trilithon (Category III AIF, IN/AIF3/25-26/1808). Complaints: smartodr.in.