SEBI allows fund, portfolio managers to accredit investors
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI allowed managers of alternative investment funds and portfolio managers to certify investors as accredited investors.
- ✓This new route aims to speed up onboarding for those seeking specific investment products.
- ✓"A manager may determine and record an investor's accredited status at onboarding or during the tenure of a scheme," SEBI said.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
New route to speed up onboarding; securities market exposure of ₹5 crore for individuals and ₹20 crore for corporates added as eligibility criterion
The Securities and Exchange Board of India (SEBI) has allowed managers of alternative investment funds (AIFs), specialised investment funds (SIFs) and portfolio managers to certify investors as accredited investors, providing an alternative to the existing process through recognised accreditation agencies.
The move is aimed at simplifying and speeding up the accreditation process, which is required for investors seeking access to certain investment products and regulatory relaxations.
Under the new framework, managers can determine an investor's accredited status either at the time of onboarding or during the tenure of a scheme, after verifying that the investor meets the prescribed eligibility criteria. The accreditation will be valid for three years and recognised across AIF, SIF and portfolio management services managers belonging to the same corporate group.
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