Now Reading: SEBI Proposes Easier Accredited Investor Rules, New Route
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SEBI Proposes Easier Accredited Investor Rules, New Route
Markets regulator SEBI has proposed easing the accredited investor (AI) framework, allowing investment managers to determine and record an investor's accredited status during onboarding. The new manager-led route would operate alongside the…
The Story in Brief
Markets regulator SEBI has proposed easing the accredited investor (AI) framework, allowing investment managers to determine and record an investor's accredited status during onboarding. The new manager-led route would operate alongside the existing accreditation agency-based system. SEBI also proposed adding securities market assets as an eligibility criterion: individuals with at least Rs 5 crore in such assets could qualify, and body corporates need Rs 20 crore. The regulator estimates nearly 3.7 lakh investors could qualify under the new criterion, compared with around 96,000 existing AIF investors. Proposed safeguards include accreditation policies, record maintenance, and independent oversight.
Separately, PMS Bazaar has partnered with NSDL Database Management Ltd to simplify the SEBI Accredited Investor certification process for eligible investors. PMS Bazaar said the collaboration aims to make certification faster and more accessible through end-to-end assistance. R Pallavarajan, founder of PMS Bazaar, said the move strengthens the platform's role in India's alternative investment ecosystem.
The Indian Opinion
The SEBI proposal is sold as widening access, but the real test is whether it actually simplifies things for the ordinary high-net-worth individual. The manager-led route shifts verification burden, but safeguards remain vague. Critics may cry favouritism towards big players, yet the existing agency route was itself a bottleneck. Watch how many of the estimated 3.7 lakh eligible investors actually get accredited under the new framework. Will the manager-led route be faster, or just another layer of paperwork?
Sources (2): thehindubusinessline.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
