The Securities and Exchange Board of India (SEBI) has announced a simplification of the accredited investor framework for Alternative Investment Funds (AIFs) to help ease operational delays and improve ease of doing business in India’s private markets. The move is part of SEBI’s ongoing efforts to streamline regulatory bottlenecks without diluting prudential safeguards.
Under the revised rules, AIF investment managers can now complete and execute key onboarding processes and contribution agreements with investors before formal accreditation certificates are issued by recognised accreditation agencies. However, any such investor commitments will not be counted toward the fund’s corpus and no funds can be accepted until the accreditation certificate is received — ensuring compliance with corpus-linked regulatory norms.
In addition, SEBI has relaxed certain documentation requirements, including simplifying net-worth proof norms by removing detailed net-worth breakdowns previously required from chartered accountants. This change is expected to reduce paperwork and accelerate onboarding for high-net-worth and eligible investors.
The revised framework is designed to reduce procedural friction and delays that previously hindered capital flows into AIFs, particularly benefiting fund managers and sophisticated investors looking for more efficient access to alternative investment products.