SEBI issues accredited investor framework permitting manager-led verification and three-year validity

SEBI issued a circular on November 5, 2026, updating the accredited investor framework to allow manager-led verification processes. The rules establish a standard three-year validity period for accreditation and revise the required eligibility evidence and record-keeping controls. These measures streamline how investment platforms and intermediaries onboard and verify qualified participants. Accredited investor frameworks maintain market integrity by ensuring high-net-worth participants meet specific financial thresholds before accessing complex financial products.

Previously, verification relied on distinct third-party agencies, but the new framework empowers investment managers to conduct verification directly under strict guidelines. This change reduces onboarding friction while maintaining regulatory oversight. Compliance officers and fund managers must update their internal verification protocols to align with the November 5, 2026 circular requirements. Ensure all client eligibility documents and verification records are stored securely for the mandatory three-year validity window.

Bottom line: adopting manager-led verification correctly ensures seamless investor onboarding while meeting SEBI audit requirements.