Sebi extends deadline for angel funds to comply with accredited investor mandate
SEBI has extended the accredited investor compliance deadline for existing Angel Funds to March 31, 2027. During the transition, these funds cannot offer investment opportunities to more than 200 non-accredited investors, while newer funds remain ...
By Kumar Gaurav, ETMarkets.com |
Reuters
SEBI has extended the Angel Fund accredited investor compliance deadline to March 31, 2027, giving existing funds additional time to meet revised regulatory requirements.
The Securities and Exchange Board of India (SEBI) has extended the deadline for angel funds registered on or before September 10, 2025, to comply with the accredited investor mandate to March 31, 2027, according to its latest circular.
The market regulator said the extension was decided based on representations from the Alternative Investment Fund (AIF) industry seeking additional time for existing angel funds to meet the mandate.
Under the revised timeline, angel funds registered with SEBI on or before September 10, 2025, will have to implement the accredited investor mandate by March 31, 2027. During the extended transition period, these funds cannot offer investment opportunities to more than 200 non-accredited investors, SEBI said.
Such angel funds will also not be allowed to accept contributions from non-accredited investors for investment in an investee company after March 31, 2027, according to the circular.
Existing investors in these angel funds will continue to hold their investments already made in the funds in accordance with the terms of the private placement memorandum (PPM) and/or other fund documents, SEBI said.
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The revised deadline replaces the earlier timeline of September 8, 2026. Under the previous provisions, angel funds registered with SEBI on or before September 10, 2025, were required to implement the accredited investor mandate by September 8, 2026 and could not offer investment opportunities to more than 200 non-accredited investors during the transition period.
SEBI had amended the AIF Regulations on September 9, 2025, to prescribe a revised regulatory framework for angel funds. It subsequently issued a circular on September 10, 2025, specifying the conditions and modalities for the revised framework. These provisions were later subsumed into Chapter 8 of SEBI's AIF Master Circular dated June 3, 2026.
For angel funds granted registration after September 10, 2025, the existing requirement remains unchanged. Such funds are required to onboard and offer investment opportunities only to Accredited Investors, SEBI said. All other provisions under Chapter 8 of the AIF Master Circular remain unchanged. The latest circular comes into force with immediate effect.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
The market regulator said the extension was decided based on representations from the Alternative Investment Fund (AIF) industry seeking additional time for existing angel funds to meet the mandate.
Under the revised timeline, angel funds registered with SEBI on or before September 10, 2025, will have to implement the accredited investor mandate by March 31, 2027. During the extended transition period, these funds cannot offer investment opportunities to more than 200 non-accredited investors, SEBI said.
Such angel funds will also not be allowed to accept contributions from non-accredited investors for investment in an investee company after March 31, 2027, according to the circular.
Existing investors in these angel funds will continue to hold their investments already made in the funds in accordance with the terms of the private placement memorandum (PPM) and/or other fund documents, SEBI said.
ALSO READ: Rs 10,000 SIP can create Rs 87.3 lakh in 20 years. Why this projection may not match your actual outcome
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The revised deadline replaces the earlier timeline of September 8, 2026. Under the previous provisions, angel funds registered with SEBI on or before September 10, 2025, were required to implement the accredited investor mandate by September 8, 2026 and could not offer investment opportunities to more than 200 non-accredited investors during the transition period.
SEBI had amended the AIF Regulations on September 9, 2025, to prescribe a revised regulatory framework for angel funds. It subsequently issued a circular on September 10, 2025, specifying the conditions and modalities for the revised framework. These provisions were later subsumed into Chapter 8 of SEBI's AIF Master Circular dated June 3, 2026.
For angel funds granted registration after September 10, 2025, the existing requirement remains unchanged. Such funds are required to onboard and offer investment opportunities only to Accredited Investors, SEBI said. All other provisions under Chapter 8 of the AIF Master Circular remain unchanged. The latest circular comes into force with immediate effect.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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