The move follows representations from the Alternative Investment Fund (AIF) industry seeking additional time for Angel Funds to comply with the revised regulatory framework.
Earlier, Angel Funds registered with SEBI on or before September 10, 2025, were required to implement the accredited investor mandate by September 8, 2026.
Under the latest circular, these funds can now continue to offer investment opportunities to non-accredited investors until March 31, 2027, subject to a limit of 200 such investors.
However, from April 1, 2027, these Angel Funds will not be allowed to accept contributions from non-accredited investors for investment in an investee company.
Also Read: SEBI eases compliance for FPIs investing only in government securities
SEBI also clarified that existing investors will continue to hold investments already made in the Angel Fund in accordance with the terms of the private placement memorandum (PPM) and other fund documents.
(Edited by : SHEERSH KAPOOR)
