Now Reading: SEBI proposes Rs 5 crore asset route for accredited investors
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SEBI proposes Rs 5 crore asset route for accredited investors
SEBI has proposed allowing individuals with at least Rs 5 crore in securities market assets to qualify as accredited investors. Corporates and trusts would need Rs 20 crore. The proposal could make…
The Story in Brief
SEBI has proposed allowing individuals with at least Rs 5 crore in securities market assets to qualify as accredited investors. Corporates and trusts would need Rs 20 crore. The proposal could make about 3.7 lakh investors eligible, roughly four times the existing AIF investor base. Investment managers could record accreditation during onboarding, while the existing agency route would remain. Investors could not self-certify. SEBI has proposed audits, record-keeping and accountability safeguards to address conflicts of interest and inconsistent standards. The regulator also wants all non-resident persons, including FPIs, to be treated as accredited investors. Public comments are invited until September 3, The Hindu BusinessLine reports.
The Indian Opinion
The easy story is that a Rs 5 crore test will instantly bring sophisticated investors and foreign capital into riskier products. The opposite claim, that manager-led accreditation automatically means a regulatory giveaway, is also too broad. The real issue is whether safeguards work when the manager benefits from bringing in an investor. Watch the consultation outcome, especially the audit rules and the number of erroneous accreditations recorded after rollout.
Sources (2): businesstoday.in, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
