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Accredited Investors: SEBI’s AIF Rule Changes of Nov 2025

1 December 20251 min read
BANKING & FINANCEAccreditedInvestors: SEBI’sAIF Rule Changesof Nov 20251 December 2025safalsetu.com

Why in the news

SEBI changed rules so Alternative Investment Funds can run schemes reserved for accredited investors, though such investors remain few.

About accredited investors

  • Sophisticated individuals or entities recognised by SEBI; may hold complex, high-risk or customised products.
  • Framework introduced in 2021.

Eligibility (2021)

InvestorTest
Individuals, family trusts, sole proprietorships, partnershipsIncome of at least ₹2 crore, or net worth of at least ₹7.5 crore with financial assets of at least ₹3.75 crore
Corporates, non-family trustsNet worth of at least ₹50 crore

Amendments of 19 November 2025

  • AIFs may start or convert to AI-only schemes.
  • Trustee duties can shift to fund managers.
  • The 1,000-investor cap is lifted for AI-only funds.
  • No minimum investment threshold for AIs.

Test yourself

1. In which year did SEBI introduce the accredited investor framework?

SEBI introduced the accredited investor framework in 2021.

2. What minimum net worth must corporate bodies and non-family trusts have to qualify as accredited investors?

The 2021 definition requires a net worth of at least ₹50 crore.

3. Which limit no longer applies to accredited investor-only AIF funds after SEBI's November 2025 amendments?

The 1,000-investor cap was lifted for AI-only funds.

This topic is part of Daily Current Affairs 28 & 29 November 2025 (23 topics).

All topics of the dayDay quizNovember 2025

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