SEBI has proposed a new investor accreditation framework based on portfolio manager validation and ₹5 crore securities exposure.
SEBI Proposes New Accreditation Model
On 15 October 2026, SEBI proposed a shift from self-certified to manager-led accreditation of investors, particularly targeting high-net-worth and professional investors. The proposal introduces a ₹5 crore minimum securities exposure criterion and three-year validity for accreditation status.
Under the new regime, only registered portfolio managers or investment advisors in good standing may certify clients as accredited investors. This is intended to strengthen due diligence and prevent misuse of privileged access to unlisted securities and private placements. Deemed accreditation will also be introduced for investors meeting overseas regulatory thresholds.
The proposal includes safeguards against cherry-picking, where managers certify only profitable clients. SEBI will maintain a central registry of accredited investors with audit trails. The concept aligns with global practices in developed markets.
Legal practitioners will need to review client onboarding workflows, especially for private fund placements and pre-IPO investments. The move increases fiduciary duty on managers and may slow down private market transactions unless systems are digitized for faster certification.
Citations
- SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018 (Proposed Amendments, 2026)
