Sebi grants 7-month extension for angel funds to meet accreditation norms

The Securities and Exchange Board of India (Sebi) has granted angel funds an extension of nearly seven months to comply with mandatory accredited investor requirements, moving the deadline to 31 March 2027.The revised regulatory framework applies specifically to those angel funds that were registered with Sebi on or before 10 September 2025. These funds are permitted to continue offering investment opportunities to as many as 200 non-accredited investors during this transition period.Starting 31 March 2027, the specified category of angel funds will no longer be allowed to accept contributions from non-accredited investors for investments in investee companies. Existing investors are permitted to maintain their current holdings in accordance with the terms established in their private placement memorandums and other fund documents. Funds registered after 10 September 2025 remain subject to the existing requirement of onboarding only accredited investors.