The Securities and Exchange Board of India (SEBI) has issued a consultation paper proposing a comprehensive review of the existing Accredited Investor (AI) framework, based on suggestions received from various stakeholders and recommendations of its Alternative Investment Policy Advisory Committee (AIPAC).The regulator has proposed securities market assets as an additional eligibility criterion for accreditation, alongside the existing income and net-worth based criteria. The proposed threshold is Rs 5 crore for individuals and Rs 20 crore for body corporates.The proposed securities market assets criterion alone, SEBI said, has the potential to expand the pool of eligible Accredited Investors to around 4 lakh, compared with the existing AIF investor base of around 1 lakh.ALSO READ: 6 equity mutual funds cross Rs 80,000 crore AUM; top 4 manage over Rs 1 lakh crore eachAccredited Investor frameworkThe Accredited Investor framework was introduced with the objective of identifying a class of investors possessing the financial capacity, sophistication and ability to understand, evaluate and bear the risks associated with complex investment products and investment strategies. The framework enables a calibrated regulatory approach under which certain regulatory flexibilities may be extended to such investors, while maintaining appropriate safeguards and market integrity.SEBI introduced the Accredited Investor framework in 2021 through amendments to the SEBI (Alternative Investment Funds) Regulations, 2012, and other regulations, with the modalities specified through circulars, now subsumed in the Master Circular for AIFs dated July 30, 2026.The framework laid down an objective, independently validated metric for ascertaining a “sophisticated investor”, in addition to the pre-existing metric based on the size of investment or commitment.SEBI proposes easier accreditation processAmong other proposals, SEBI has suggested simplifying the onboarding process through manager-led accreditation, which will be valid at a group level, in addition to the existing Accreditation Agency route.It has also proposed streamlining the validity of accreditation to three years on the basis of the latest documents.SEBI has further proposed expanding the scope of deemed Accredited Investors to cover all Persons Resident Outside India (PROI). This would enable all NRIs, OCIs and other persons resident outside India to invest in AIFs more seamlessly without a minimum threshold.Since its introduction, accreditation, SEBI said, has assumed increasing significance within the AIF ecosystem, with its benefits now extending across AIFs, Specialised Investment Funds (SIFs) of Mutual Funds, Portfolio Management Services (PMS) and Angel Funds.