Regulator SEBI on Wednesday sought comments on the proposal to introduce the concept of ‘accredited investors’ in the Indian securities market. The comments can be sent to the regulator in a prescribed format latest by March 18, it said in a consultation paper.
SEBI noted that accredited investors, also called qualified investors or professional investors, are those who have an understanding of various financial products and the risks and returns associated with them. They are able to take informed decisions regarding their investments and are recognised by many securities and financial market regulators globally.
The accredited investor concept may offer benefits to investors and financial product/service providers, such as flexibility in minimum investment amount, flexibility and relaxation in regulatory requirements and access to products/ services offered exclusively to accredited investors.
SEBI said the accreditation once granted shall be valid for a year. It also said the accreditation may be carried out via ‘Accreditation Agencies’ which may be the market infrastructure institutions or their subsidiaries.