Sebi extends deadline for angel funds to comply with accredited investor mandate

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.

Live Events

ALSO READ: Rs 10,000 SIP can create Rs 87.3 lakh in 20 years. Why this projection may not match your actual outcome
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)