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SEBI Eases Rules for AIF Investor Accreditation
11 Jan
Summary
- SEBI simplifies accreditation for alternative investment funds investors.
- Detailed net-worth break-ups are no longer required.
- Fund managers can proceed with agreements while accreditation is pending.
The Securities & Exchange Board of India (SEBI) has introduced simplified accreditation requirements for investors in alternative investment funds (AIFs). These changes, effective immediately, aim to streamline the investment process and enhance flexibility for fund managers.
Previously, investors were required to submit detailed net-worth break-ups as part of their accreditation. SEBI has now removed this requirement, making it optional for chartered accountants to specify if the net worth meets the required thresholds. This simplification reduces the documentation burden on potential investors.
Furthermore, SEBI now permits investment managers to finalize contribution agreements and commence operational procedures based on their own assessment, even if an accreditation certificate is still pending. However, any commitments made by such investors will only be included in the fund's corpus calculation after the accreditation certificate is obtained, ensuring compliance with prudential norms.
