SEBI Extends Accredited Investor Compliance Timeline For Angel Funds Till March
Markets regulator SEBI has extended the deadline for angel funds to comply with the new accredited investor mandate by nearly…
The Securities and Exchange Board of India (SEBI) has granted a seven-month extension until March 31, 2027, for angel funds to comply with the new accredited investor mandate, after receiving input from the Association of Institutional Investors (AIF). This extension applies to angel funds registered with SEBI on or before September 10, 2025.
Previously, these funds had to comply by September 8, 2026. Currently, such funds can offer investment opportunities to a maximum of 200 non-accredited investors. An accredited investor is an individual or entity that meets certain financial eligibility criteria set by SEBI. An individual investor must have an annual income over ₹2 crore and a net worth over ₹7.5 crore with at least ₹3.75 crore in financial assets.
Trusts and corporate bodies must have a net worth of at least ₹50 crore to be accredited. Post the deadline, angel funds will no longer be able to accept contributions from non-accredited investors for investments in portfolio companies, though existing investments will remain unaffected. The amendment aims to identify financially capable investors who can evaluate and bear the risks associated with complex investment products.
Angel funds, being venture capital funds under Category I AIF, must have at least five accredited investors and declare their first close within 12 months. They can invest directly in startups and can make follow-on investments in existing portfolio companies, subject to certain limits.
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