The Securities and Exchange Board of India (Sebi) has proposed changes to the accredited investor (AI) framework aimed at widening eligibility and simplifying the accreditation process for sophisticated investors. Under the proposed framework, investment managers would be allowed to determine and record an investor’s accredited status during the onboarding process, rather than relying solely on a separate accreditation route. Sebi has also proposed recognising securities market assets as an additional eligibility criterion for investors seeking accredited status. In another significant change, the regulator has suggested extending deemed accredited investor status to all persons resident outside India (PROIs), including foreign portfolio investors (FPIs). Accredited investors are a defined category of investors considered to have the financial capacity, knowledge and ability to understand and bear the risks associated with complex investment products and strategies. They are consequently eligible for certain regulatory flexibilities. Under the proposed manager-led route, investors would undergo accreditation separately when they are onboarded for products launched by different investment managers. Sebi’s proposals are aimed at making the accreditation framework more accessible while improving the efficiency of investor onboarding and expanding the pool of investors eligible for regulatory benefits.
Sebi Seeks to Simplify Accredited Investor Framework, Expand Eligibility
