The Securities and Exchange Board of India (SEBI) has extended the timeline for existing Angel Funds to comply with the Accredited Investor mandate by nearly seven months, providing them additional time to transition to the revised regulatory framework.
Under the earlier framework, Angel Funds registered with SEBI on or before September 10, 2025 were required to implement the Accredited Investor mandate by September 8, 2026. SEBI has now extended this deadline to March 31, 2027, following representations from the Alternative Investment Fund (AIF) industry seeking additional time for compliance.
During the extended transition period, eligible Angel Funds cannot offer investment opportunities to more than 200 non-Accredited Investors. From April 1, 2027, such funds will not be permitted to accept contributions from non-Accredited Investors for investment in an investee company.
SEBI has also clarified that existing investors will be permitted to continue holding their investments already made in the Angel Fund, in accordance with the terms of the Private Placement Memorandum (PPM) and other applicable fund documents.
The Accredited Investor requirement will continue to apply to Angel Funds registered with SEBI after September 10, 2025. Such funds are required to onboard and offer investment opportunities only to Accredited Investors, as prescribed under the revised regulatory framework.
SEBI said that all other provisions contained in Chapter 8 of the AIF Master Circular will remain unchanged. The relaxation has come into effect immediately and the Master Circular has been updated accordingly.
The extension is expected to provide existing Angel Funds additional time to align their investor onboarding and compliance processes with the revised regulatory requirements.