Sebi Proposes Easier Accredited Investor Framework with Manager-Led Route
The Securities and Exchange Board of India (Sebi) has proposed changes to the accredited investor framework. The regulator aims to make it easier for investment managers to determine an investor's accredited status during onboarding.
Under the new proposal, accreditation for products launched by different managers will be undertaken each time an investor is onboarded. For products launched by the same manager, accreditation could remain valid for three years from the eligibility assessment.
The proposed changes also include adding securities market assets as an additional eligibility criterion. Individuals with at least ₹5 crore of such assets could qualify, while the proposed threshold for body corporates is ₹20 crore.
Sebi estimates that about 370,000 investors could qualify under the proposed securities-market-asset criterion, compared to around 96,000 existing accredited investors now.