SEBI/HO/IMD/IMD-I/DF9/P/CIR/2021/620                                                          August 26, 2021




Recognized Stock Exchanges,


Alternative Investment Funds,

Portfolio Managers,

Investment Advisers


Dear Sir/ Madam,

Sub: Modalities for implementation of the framework for Accredited Investors

A. General

  1. Pursuant to public consultation and approval of the SEBI Board, the framework for “Accredited Investors” (AIs) has been introduced in the securities market. In this regard, the SEBI (Alternative Investment Funds) Regulations, 2012 (link), SEBI (Portfolio Managers) Regulations, 2020 (link) and SEBI (Investment Advisers) Regulations, 2013 (link) have been amended and notified on August 03, 2021.


  1. Under the aforesaid framework, AIs may avail flexibility in minimum investment amount (“Lower ticket size”) or concessions from specific regulatory requirements applicable to investment products, subject to conditions applicable for specific products/ services under the aforesaid Regulations. The modalities of accreditation are provided in Annexure A.


  1. The framework for AIs may be made available on the respective websites.


B. Accreditation Agency

  1. Persons desirous of being reckoned as AIs shall approach an Accreditation Agency for accreditation. Accreditation Agencies shall be responsible for:

(a) verification of documents submitted by applicants for accreditation,

(b) timely processing of applications for accreditation and issuance of accreditation certificate,

(c) maintaining data of accredited investors,

(d) verification of accreditation status,

(e) maintaining confidentiality of investor information at all times, and  (f) any other responsibilities as may be specified by SEBI from time to time.


  1. Accreditation Agencies shall have the requisite infrastructure including systems and manpower to fulfill their responsibilities as specified under Para 4.


  1. The following entities are eligible to carry out the accreditation process:

(i) Subsidiaries of recognized Stock Exchanges, provided the Stock Exchange meets the following criteria:

(a) minimum 20 years presence in Indian securities market,

(b) minimum networth of INR 200 crores,

(c) presence of nation-wide terminals,

(d) having Investor grievance redressal mechanisms in place, including arbitration,

(e) presence of Investor Service Centers (ISCs) in at least 20 cities, and (f) any other criteria as specified by SEBI from time to time.

(f) Subsidiaries of Depositories


  1. Eligible subsidiaries shall make an application to SEBI through the concerned Stock Exchange or Depository, for recognition as an Accreditation Agency in terms of Regulation 2(1)(aa) of the SEBI (Alternative Investment Funds) Regulations, 2012, within 3 weeks from the date of the Circular.


  1. This Circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, to protect the interest of investors in securities market and to promote the development of, and to regulate the securities market.


  1. This Circular is available on SEBI website at sebi.gov.in under the categories “Legal Framework – Circulars”, “Info for – Alternative Investment Funds”, “Info for – Portfolio Managers” and “Info for- Investment Advisers”.