SEBI has granted additional time to certain Angel Funds to comply with the Accredited Investor mandate under the AIF Master Circular.
Background: Angel Funds registered with SEBI on or before September 10, 2025 were required to fully transition to onboarding only Accredited Investors by September 8, 2026, subject to a cap of 200 non-accredited investors during the transition period.
What has changed: Based on representations from the AIF industry, SEBI has extended this compliance deadline from September 8, 2026 to March 31, 2027.
Practical impact:
Such Angel Funds may continue to onboard up to 200 non-accredited investors until March 31, 2027.
No fresh contributions can be accepted from non-accredited investors after March 31, 2027.
Existing investors will continue to hold their investments as per the terms of the PPM/fund documents — no change to their status.
All other provisions of Chapter 8 of the AIF Master Circular remain unchanged.
The SEBI Master Circular for AIFs (dated June 3, 2026) has been updated to reflect this extension.
