SEBI proposes ₹5 crore securities route for accredited investor status
Synopsis
SEBI's proposed ₹5 crore securities-assets route could nearly quadruple India's AIF-eligible investor base from 96,000 to an estimated 3.7 lakh — a structural shift that redefines who counts as a sophisticated investor in India's fast-growing private markets. The simultaneous move to grant deemed accredited status to all FPIs adds a significant cross-border dimension.
Key Takeaways
SEBI proposed on 13 August 2026 that individuals holding at least ₹5 crore in securities-market assets qualify as accredited investors.
For body corporates and non-family trusts , the proposed threshold is ₹20 crore in securities-market assets.
An estimated 3.7 lakh investors could become eligible under the new route, up from the current AIF base of about 96,000 investors .
All Persons Resident Outside India (PROIs) and Foreign Portfolio Investors (FPIs) are proposed to receive deemed accredited investor status automatically.
Eligible securities-market assets include listed equities, mutual funds, REITs, InvITs, AIF units, unlisted securities, overseas investments, and futures positions .
The Securities and Exchange Board of India (SEBI) on Thursday, 13 August 2026, proposed sweeping changes to its accredited investor framework, introducing a new eligibility route based on securities-market holdings worth at least ₹5 crore for individuals. The move is designed to significantly broaden the pool of investors who can access alternative investment products, including Alternative Investment Funds (AIFs).
The New Securities-Assets Route
Under the proposal, individuals holding securities-market assets valued at a minimum of ₹5 crore would qualify as accredited investors regardless of whether they meet existing income or net-worth thresholds. For body corporates and trusts — excluding family trusts — the proposed minimum threshold is ₹20 crore in securities-market assets.
SEBI's own analysis estimates that approximately 3.7 lakh investors could become eligible under this route as of 30 April 2026. This would mark a substantial jump from the current AIF investor base of around 96,000 investors — a potential near-fourfold expansion in participation.
Who Qualifies Under Existing Rules
At present, individuals, Hindu Undivided Families (HUFs), family trusts, and sole proprietorships can obtain accredited investor status by meeting one of three prescribed criteria: an annual income of at least ₹2 crore; a net worth of at least ₹7.5 crore with a minimum of ₹3.75 crore in financial assets; or a combination of annual income of ₹1 crore and net worth of ₹5 crore, provided at least ₹2.5 crore is held in financial assets.
The proposed securities-assets route adds an entirely new pathway, one that SEBI argues is grounded in demonstrated market participation rather than income or balance-sheet wealth alone.
Overseas Investors to Get Deemed Status
In a separate but equally significant proposal, SEBI has recommended granting deemed accredited investor status to all Persons Resident Outside India (PROIs) under the Foreign Exchange Management Act (FEMA), including all Foreign Portfolio Investors (FPIs). This would remove a procedural barrier that currently requires overseas investors to individually demonstrate eligibility before accessing certain Indian investment products.
The regulator expects the change to make India's private markets more accessible to global capital, at a time when the country is actively courting foreign institutional participation.
What Assets Count Towards the Threshold
SEBI has proposed that the following securities-market assets be counted for accreditation purposes: listed equities, debt securities, mutual funds, REITs, InvITs, AIF units, unlisted securities, overseas investments, and futures positions. The inclusion of derivatives exposure signals that the regulator is treating active market participation as a proxy for risk sophistication.
What Comes Next
The proposals are currently open for public consultation. If adopted, they would represent the most significant overhaul of India's accredited investor architecture since the framework was introduced. Stakeholders from the AIF and wealth management industry are expected to submit feedback before the consultation window closes. The final framework, once notified, could reshape how India's fast-growing private markets are accessed by both domestic and global investors.
Point of View
But it also means that a leveraged retail trader with ₹5 crore in futures exposure could theoretically access products designed for institutional-grade risk tolerance. The deemed accreditation of all FPIs is the quietly significant move here: it removes friction for global capital at a moment when India needs foreign participation in its private markets. The real test will be in the consultation response — whether domestic wealth managers push back on the threshold as too low, or whether the AIF industry lobbies to lower it further.
NationPress
13 Aug 2026
Frequently Asked Questions
What is SEBI's proposed ₹5 crore accredited investor route?
SEBI has proposed that individuals holding securities-market assets worth at least ₹5 crore qualify as accredited investors, regardless of their income or net worth. This is a new eligibility pathway, separate from existing income and net-worth criteria, aimed at expanding access to Alternative Investment Funds and other sophisticated products.
How many new investors could become eligible under SEBI's proposal?
According to SEBI's own analysis, approximately 3.7 lakh investors could qualify under the proposed securities-assets route as of 30 April 2026. This compares with the current AIF investor base of around 96,000 — a potential near-fourfold increase.
What are the current criteria for accredited investor status in India?
Currently, individuals, HUFs, family trusts, and sole proprietorships can qualify by meeting one of three thresholds: annual income of at least ₹2 crore; net worth of at least ₹7.5 crore with ₹3.75 crore in financial assets; or a combination of ₹1 crore annual income and ₹5 crore net worth with ₹2.5 crore in financial assets.
What does the deemed accredited investor status for FPIs mean?
SEBI has proposed automatically granting accredited investor status to all Persons Resident Outside India under FEMA, including all Foreign Portfolio Investors, without requiring individual eligibility checks. This is expected to reduce procedural barriers and make Indian private markets more accessible to global capital.
Which assets will count towards the ₹5 crore securities-market threshold?
SEBI has proposed including listed equities, debt securities, mutual funds, REITs, InvITs, AIF units, unlisted securities, overseas investments, and futures positions in the calculation of securities-market assets for accreditation purposes.
