Taghash has collaborated with NDML Accreditation Agency to Launch Accredited Investor Certification Services

The Securities and Exchange Board of India (SEBI) has formally introduced the Accredited Investor (AI) framework to classify and empower sophisticated investors with access to specialized investment products and regulatory flexibility.

At Taghash, in collaboration with NDML Accreditation Agency (a SEBI-authorized body), we provide end-to-end accreditation services. This article outlines the aspects of the framework.

Definition and Rationale

An Accredited Investor (AI) is a person or entity recognized by SEBI as having the financial capacity, knowledge and risk appetite to participate in complex investment products.

The rationale for this classification includes:

• Providing regulatory flexibility for sophisticated investors.
• Allowing access to investment opportunities not suitable for retail investors.
• Aligning Indian capital markets with global practices in the US, EU and Singapore.

Eligibility Criteria

Eligibility is determined based on net worth, financial assets and income, excluding the value of the primary residence.

Individuals, HUFs, Sole Proprietors and Partnership Firms

• Option 1: Net worth > ₹7.5 crore, of which at least ₹3.75 crore in financial assets.
• Option 2: Annual income > ₹2 crore (can be combined with spouse).
• Option 3: Net worth > ₹5 crore + annual income > ₹1 crore, of which at least ₹2.5 crore in financial assets.

Body Corporates (Domestic Company / LLP)

• Net worth ≥ ₹50 crore (Net Worth = Book Value of Assets – Book Value of Liabilities, excluding intangibles).

Trusts (Other than Family Trusts)

• Net worth ≥ ₹50 crore.

Validity of Accreditation

• 2 years if criteria met in the preceding year.
• 3 years if criteria met in the preceding two years.

Key Regulatory Benefits

Accredited Investors receive preferential treatment under SEBI’s regulatory framework, including:

• Access to Large Value Funds (LVFs): LVFs require a minimum commitment of ₹70 crore and allow greater concentration limits (50% vs. 25% for standard AIFs).
• Access to Angel Funds & Co-Investments: Post-SEBI’s June 2025 update, participation in these categories is restricted exclusively to Accredited Investors.
• Reduced Investment Thresholds in AIFs & PMS: Accredited Investors can invest below standard minimums (₹1 crore for AIFs, ₹50 lakh for PMS) subject to manager approval.
• Regulatory Flexibility:
  • Longer fund tenure extensions (up to 5 years with investor approval).
  • Exemptions from certain standardized disclosure requirements.
  • Ability to negotiate customized terms in Portfolio Management Services (objectives, reporting, fees, disclosures).
• Recognition as Qualified Institutional Buyers (QIBs): Accredited Investors are treated on par with institutional investors for Angel Fund participation.

Accreditation Process

Taghash, in collaboration with NDML (NSDL Database Management Limited) accreditation agency, facilitates a 100% digital accreditation process:

1. Complete your application online 
2. Verification done & certificate issued within 7 business days (provided eligibility criteria and documentation requirements are met)
3. Get a single point of access to all formalities and queries related to your application

In Brief

The Accredited Investor framework is central to SEBI’s vision of creating a tiered investment ecosystem, giving sophisticated investors direct access to private markets, specialized funds and regulatory privileges.

At Taghash, we streamline this process through a fully digital platform, offering end-to-end support - from eligibility assessment to certification issuance - in collaboration with NDML Accreditation Agency.

📩 For technical assistance or to initiate your accreditation process, our team is always available at accreditation@taghashservices.com.