Accredited investors in India — the thresholds, and what accreditation actually gets you
Who is an accredited investor in India?
An individual, HUF, family trust or sole proprietorship qualifies on any one of three tests: annual income of at least ₹2 crore; or net worth of at least ₹7.5 crore, of which at least ₹3.75 crore is in financial assets; or annual income of at least ₹1 crore together with net worth of at least ₹5 crore, of which at least ₹2.5 crore is in financial assets. Body corporates need net worth of at least ₹50 crore.
The thresholds
SEBI's framework sets three alternative tests for individuals. Meeting any one of them is enough.
| Applicant | Test |
|---|---|
| Individuals, HUFs, family trusts, sole proprietorships | Annual income ≥ ₹2 crore; or net worth ≥ ₹7.5 crore of which ≥ ₹3.75 crore is in financial assets; or annual income ≥ ₹1 crore and net worth ≥ ₹5 crore of which ≥ ₹2.5 crore is in financial assets |
| Partnership firms under the Indian Partnership Act, 1932 | Each partner independently meets the individual criteria |
| Trusts other than family trusts | Assets under management ≥ ₹50 crore |
| Body corporates | Net worth ≥ ₹50 crore |
Source: SEBI's board memorandum introducing the framework for accredited investors in the securities market, July 2021, paragraph 4.1. Central and State Governments and certain developmental agencies are also eligible in their own right.
Note the shape of the individual tests. The third one exists so that somebody with a solid but not spectacular income and a substantial balance sheet qualifies without needing ₹2 crore of income or ₹7.5 crore of net worth on its own. It is the test most people actually meet.
Two rules that change who qualifies
These are in the framework and they are left out of almost every summary of it.
Your primary residence does not count. SEBI excludes the value of the applicant's primary residence when computing net worth. For an Indian investor holding a large share of their wealth in the home they live in, this is often the difference between qualifying and not.
Real estate is valued at the ready reckoner rate. Where assets counted towards the test are real estate, the ready reckoner rate published by the relevant local body is used, not a market valuation or a broker's estimate. That is typically the more conservative number.
Together these two rules mean the tests are harder to meet than they look for property-heavy balance sheets, and easier for portfolio-heavy ones. The financial-assets component in tests two and three points the same way.
Joint accounts
A joint account can be treated as an accredited investor account in two defined situations:
- Spouses, where their combined income or net worth meets the criteria.
- Parents and children, where at least one member independently meets the criteria.
Combining is allowed for spouses. For a parent-and-child account, somebody has to qualify on their own — the amounts are not added together.
How accreditation is granted
Accreditation is conferred by a third party, not claimed. A SEBI-empanelled accreditation agency assesses the application against documentary proof, which includes a self-certified copy of the income tax return for the financial year preceding the application where income is the basis.
Two consequences follow:
- It can be refused, and the agency, not the fund, decides.
- It expires. Accreditation carries a validity period and it can fall away if income, net worth or AUM drops below the threshold. It is a status to be maintained, not a badge earned once.
What it gets you
Accreditation is the gate to a set of relaxations SEBI has been widening.
- Accredited Investors Only AIFs — a fund class created by SEBI's third amendment of 18 November 2025, in which every investor is accredited. It carries six relaxations, including exemption from the 1,000-investor cap, a waiver of the investment team's NISM certification requirement, and permission for the manager to act as trustee.
- Large value funds — every investor must be accredited and commit at least ₹25 crore, a threshold SEBI cut from ₹70 crore on 18 November 2025. Large value funds may also invest up to 50 percent of corpus in a single investee company, against the standard 25 percent.
The logic SEBI applies is that several AIF rules exist to protect investors who need protecting, and where every investor has been independently assessed as meeting income or net-worth thresholds, some of those protections are friction without a corresponding benefit.
What it does not get you
It does not lower the ordinary ₹1 crore minimum. That floor sits in Regulation 10(c) and applies to accredited and non-accredited investors alike outside the specific structures above — see AIF minimum investment.
It does not give you access to performance data. Accredited investors see the same absence of comparable per-fund returns as everybody else, because the disclosure regime does not vary by investor type. See why AIF returns are not comparable.
And it is not a judgement that any particular fund is suitable for you. It is a finding about your balance sheet, made by an agency that has never seen the fund.
Sources
- SEBI, Introduction of framework for Accredited Investors in the securities market, board memorandum, July 2021, paragraph 4.1 (eligibility), 4.2 (joint accounts) and 4.11 (primary residence and real estate valuation). https://www.sebi.gov.in/sebi_data/meetingfiles/jul-2021/1626434827210_1.pdf
- SEBI circular SEBI/HO/IMD/IMD-I/DF9/P/CIR/2021/620 dated 26 August 2021, Modalities for implementation of the framework for Accredited Investors.
- Third amendment to the AIF Regulations, notified 18 November 2025.
Checked against source on 24 August 2026. Information only, not investment advice. Verify with SEBI and with an accreditation agency before acting.
Checked against source on 24 August 2026. This page is information, not legal, tax or investment advice.