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Sebi eyes new investor accreditation route
13 Aug
Summary
- Investment managers could soon determine accredited investor status.
- Securities market assets proposed as new eligibility criterion.
- Non-residents and FPIs may gain deemed accredited investor status.
The Securities and Exchange Board of India (Sebi) has put forth proposed amendments to its accredited investor (AI) framework. A key change involves enabling investment managers to determine and record an investor's accredited status during the onboarding process. This new manager-led route is intended to supplement the existing agency-based system, offering greater flexibility.
The proposed framework also introduces securities market assets as a new eligibility criterion for accreditation. Individuals possessing at least ₹5 crore in such assets, including demat holdings, REITs/InvITs, and mutual funds, could qualify. For body corporates, the threshold is set at ₹20 crore.
Furthermore, Sebi is considering extending deemed accredited investor status to all persons resident outside India, including foreign portfolio investors (FPIs). Safeguards like accreditation policies and record maintenance will be implemented. This initiative is expected to expand the pool of eligible investors significantly.
