SEBI extends the deadline for existing angel funds to comply with the accredited investor mandate to March 31, 2027. The regulator sets conditions for the transition period, limiting how these funds handle non-accredited investors.
During the transition, existing angel funds are restricted in the number of non-accredited investors they can involve in offerings—capped at 200 non-accredited investors. After the deadline, from April 1, 2027, these angel funds are not allowed to accept contributions from non-accredited investors for investment in an investee company. Newer angel funds, under the applicable framework described by the outlets, are already restricted to accredited investors.
The outlets broadly agree on the key timeline and the treatment of non-accredited investors, with one source emphasizing the transition cap and the other highlighting the post-deadline prohibition on accepting non-accredited contributions for investments in portfolio companies.
