The Securities and Exchange Board of India (SEBI) has extended the deadline for angel funds to comply with the accredited investor mandate by nearly seven months, moving it to March 31, 2027. This extension applies to angel funds registered with SEBI on or before September 10, 2025. Previously, these funds were required to meet the mandate by September 8, 2026, according to inc42.com.
The extension follows representations from the Alternative Investment Fund (AIF) industry, allowing angel funds more time to adjust to the new regulatory framework. Until the revised deadline, these funds can offer investment opportunities to up to 200 non-accredited investors. SEBI’s circular clarifies that after March 31, 2027, angel funds will no longer be permitted to accept contributions from non-accredited investors for new investments, although existing investments by such investors will remain unaffected.
The accredited investor criteria set by SEBI include an annual income exceeding ₹2 crore and a net worth above ₹7.5 crore with at least ₹3.75 crore in financial assets for individuals. Trusts and corporate bodies must have a net worth of ₹50 crore or more to qualify. These rules were introduced as part of SEBI’s amendments to the AIF regulations in September 2025 to tighten compliance and investor protection in the angel fund segment.
The revised deadline gives angel funds additional time to align with SEBI’s regulatory framework while maintaining investment opportunities for non-accredited investors until March 31, 2027. SEBI’s circular was released on September 7, 2026, marking the formal announcement of this extension.