SEBI to ease aspects of accredited investor framework for AIFs, announcements likely soon, says top official

SEBI to ease aspects of accredited investor framework for AIFs, announcements likely soon, says top official

The Securities Board of Exchange (SEBI) is working on easing certain aspects of its accredited investor (AI) framework for alternative investment funds (AIFs), and announcements on the subject are expected soon, said SEBI's Executive Director, Dr Ruchi Chojer on Thursday.

As ED of the Alternative Investment Fund and Foreign Portfolio Investors Department at SEBI, Chojer said the regulator has been engaging with wealth managers and industry participants who have flagged concerns around the accreditation process, including the availability of accredited investors and issues related to disclosure requirements.

“The people who understand the risk and return would certainly fulfil the accreditation requirement,” Chojer said, adding that SEBI is examining ways to address concerns raised by investors, including those related to sharing asset details for the purpose of obtaining accreditation.

“You will soon hear some developments in this regard on how we are thinking of easing out and trying to address the concerns that are in the minds of these investors,” she said.

Chojer did not elaborate on the nature or timeline of the proposed changes, but indicated that SEBI would collaborate with the industry to identify bottlenecks and ensure that the framework balances investor protection with market development.

She made these remarks at CII's Alternative Investment Funds' Summit 2025, in an elaborate discussion on AIFs becoming increasingly important for India’s capital markets, with policymakers looking to deepen alternative sources of capital beyond traditional banking channels.

Chojer also spoke about SEBI’s proposed blended finance norms, which would allow AIFs to structure capital by combining concessional funds from development finance institutions and sovereign wealth funds with commercial capital.

“These norms allow AIFs to structure capital in a way that concessional capital… can be blended with commercial capital,” she said, adding that she expects greater activity in this area once the framework is introduced.

Highlighting India’s long-term financing needs, Chojer said the country would require over $10 trillion to meet its net-zero targets by 2070, making alternative financing mechanisms critical for sustainable development.

Alternative financing through AIFs provides flexibility, innovation and risk-sharing mechanisms that conventional financing channels often cannot, she said, describing AIFs as essential to India’s financial future.