The Securities and Exchange Board of India (SEBI) has extended the compliance deadline for existing Angel Funds to meet the accredited investor requirement by nearly seven months, moving the deadline to March 31, 2027.
The extension follows representations from the Alternative Investment Fund (AIF) industry seeking additional time to implement the revised regulatory requirements.
Under the earlier framework, Angel Funds registered with SEBI on or before September 10, 2025, were required to comply with the accredited investor mandate by September 8, 2026.
With the revised timeline, eligible existing Angel Funds may continue to provide investment opportunities to non-accredited investors until March 31, 2027, subject to a maximum limit of 200 such investors.
From April 1, 2027, these Angel Funds will be prohibited from accepting contributions from non-accredited investors for investment in an investee company.
SEBI has also clarified that investments already made by existing investors will remain unaffected. Such investors may continue to hold their investments in accordance with the applicable Private Placement Memorandum (PPM) and other governing fund documents. CASansaar
The extension provides existing Angel Funds additional time to transition to the accredited investor framework while maintaining the prescribed investor limit during the extended compliance period.