Now Reading: BSE sets transaction rules for accredited and non-accredited SIF investors
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BSE sets transaction rules for accredited and non-accredited SIF investors
BSE sets transaction rules for accredited and non-accredited SIF investors
The Bombay Stock Exchange has issued the transaction execution process for accredited and non-accredited investors under the new Specialized Investment Funds framework. The circular, released on 25 August, outlines separate procedures for…
The Bombay Stock Exchange has issued the transaction execution process for accredited and non-accredited investors under the new Specialized Investment Funds framework. The circular, released on 25 August, outlines separate procedures for direct market transactions and those routed through alternative investment funds, clarifying which investors can access which channels.
Accredited investors are defined as individuals or entities meeting net worth or income thresholds set by the Securities and Exchange Board of India. Non-accredited investors remain eligible but must follow a distinct order-flow process, with additional checks on minimum ticket size and suitability. The rules take effect immediately for all SIFs registered with SEBI.
Market participants have been asked to update their systems to comply with the two-tier investor classification before the next trading session. The exchange warned that any deviation could result in rejection of orders.
Indian Opinion Analysis
The BSE circular operationalises SEBI's July 2024 SIF framework, which created a new category between mutual funds and portfolio management services. The key threshold for accreditation is net assets of Rs 5 crore for individuals or Rs 20 crore for corporates, as defined by SEBI. The two-tier system means fund houses must build separate order-routing and compliance modules, raising operational costs for smaller asset managers. The real test will be how many non-accredited investors actually meet the higher minimum investment amounts, which SEBI left to each fund's scheme document. The first SIF applications under these rules are expected before the end of 2025.
Source: bseindia.com
This story was synthesised by AI from the source linked above.
