The number of accredited investors in India is steadily rising, increasing from just 649 in May last year to 2,181 as of February 2026. These investors now account for 30% of total investments in Alternative Investment Funds (AIFs).
AIFs are reserved for sophisticated investors to invest in non-traditional assets such as private equity, hedge funds, and real estate. These funds typically offer higher risk-return profiles than mutual funds and require high minimum investments.
Within AIF regulations, the investor accreditation framework introduced by the Securities and Exchange Board of India (Sebi) provides additional flexibilities and exclusive opportunities for those who qualify.
Eligibility criteria
For individuals, the framework mandates either:
- Annual income of ₹2 crore or more, or
- Net worth of ₹7.5 crore or more, with at least ₹3.75 crore in financial assets
Alternatively:
- Annual income of more than ₹1 crore and net worth of ₹5 crore, with at least ₹2.5 crore in financial assets
A simplified formula to calculate net worth is total assets minus total liabilities, excluding the primary residence.
According to Sebi, accreditation helps identify a class of sophisticated investors with the ability and willingness to invest in relatively riskier products that have minimal regulatory oversight.
How to apply?
According to NSE, the documentation checklist includes PAN card, Aadhaar card, income tax returns for the last three financial years, and a certificate from a practising chartered accountant stating and liquid net worth as on the date of application.
Liquid net worth is calculated by adding capital and free reserves and subtracting fixed assets such as pledged securities, unlisted securities, doubtful debts and advances, prepaid expenses and losses, intangible assets, and 30% of the value of marketable securities.
Additional documents such as may also be required.
The process involves a fee of ₹5,000, along with a certificate fee of ₹5,000 for two years or ₹9,500 for three years, according to CDSL Ventures Ltd.
Key benefits
Once accredited, you enjoy various flexibilities and exclusive investment opportunities.
The with a minimum ticket size of $150,000 are available at $10,000 to accredited investors, investment in Portfolio Management Services (PMS) and AIFs which have minimum ticket size of ₹50 lakh and ₹1 crore for non-accredited investors are also offered at a lower ticket size to AIs.
They are also exempted from the ₹10 lakh minimum limit of investing in Specialised Investment Funds. Moreover, only AIs can invest in certain funds like large value AIFs, large value AI PMS, co-investment vehicles, AI only funds and Angel Funds.
Shobhit Mathur, co-founder, Ionic Wealth, said flexibility in allocation is a key advantage.
“At the same time, it creates a meaningful entry point for newly accredited investors – those who meet the eligibility criteria, giving them the ability to start with a smaller amount, assess performance, and then scale exposure with greater conviction,” he said.
He added that while onboarding is relatively efficient, there have been industry representations to work with CDSL Ventures Ltd to make the process more seamless.
Regulatory push
Harsh Kothari, partner at IC RegFin Legal, said Sebi is taking steps to strengthen the accredited investor framework, including reducing turnaround time, lowering costs, enabling sourcing of financial data from verified databases, and offering benefits for AIFs onboarding accredited investors.
He added that a consultation paper last year outlined a long-term vision where AIF schemes may eventually have an investor base comprising only accredited investors.
“This was followed by certain amendments mandating accreditation status for investors for co-investing via a co-investment vehicle and investing in an angel fund. Investors looking to invest in such opportunities and those looking to benefit from greater regulatory flexibility should definitely consider accreditation,” he said.