Accredited Investor Certification

SEBI (Alternative Investment Funds) Regulations 2012 (Regulation 2(1)(b)) define an accredited investor. SEBI Circular SEBI/HO/AFD/PoD/CIR/2023/0012 (January 2023) operationalised the framework and mandated that net worth be certified by a CA or bank. Schedule I of the AIF Regulations sets out the exact financial thresholds and eligible asset classes.

An individual qualifies under any one of three tests: (a) net worth of at least Rs. 7.5 crore with at least Rs. 3.75 crore in financial assets (liquid securities, bank balances, insurance surrender value, mutual fund units); (b) annual income exceeding Rs. 2 crore in each of the last two financial years; or (c) a combination of net worth Rs. 5 crore plus annual income Rs. 1 crore. Immovable property may count toward total net worth but not the financial-assets sub-limit per Schedule I.

The certificate is issued as an Agreed-Upon Procedures engagement under ICAI Standards on Related Services (SRS 4400). It states the valuation basis, the computation date, the asset and liability breakdowns, and confirms figures against bank statements, demat holdings, and audited financials for business interests. The certificate is restricted-use, addressed to the notified Accreditation Agency or the AIF manager, and does not constitute a general assurance opinion.

BSE Limited and NSDL e-Governance Infrastructure Limited are the notified Accreditation Agencies under SEBI Circular SEBI/HO/AFD/PoD/CIR/2023/0012. The investor submits the CA certificate, KYC documents, and a self-declaration to the Agency portal, which then issues the Accredited Investor Certificate. Accreditation is valid for one year and requires a fresh net worth certificate and re-application at renewal.

Yes. For a HUF, net worth is computed for the joint family and the certificate is addressed to the Karta. For a body corporate or trust, the threshold is net worth exceeding Rs. 50 crore per the most recent audited balance sheet (Schedule I, SEBI AIF Regulations 2012). We compute net worth per Ind AS or AS as applicable and issue the certificate in the name of the entity.