Overview of the Proposed Regulatory Review
The Securities and Exchange Board of India (SEBI) has released a consultation paper aimed at carrying out a thorough review of the current accredited investor framework. This initiative stems from feedback gathered from various market participants alongside recommendations put forward by the Alternative Investment Policy Advisory Committee.
Key Proposed Changes and Asset Criteria
Among the primary adjustments is the introduction of securities market assets as an additional benchmark for obtaining accreditation. Under this recommendation, individuals would need a threshold of INR 5 crore, while body corporates would require INR 20 crore, supplementing existing income and net-worth requirements. Market regulators estimate this single modification could expand the pool of eligible participants significantly.
Several other modifications have been outlined in the consultation document:
- Establishing a uniform validity period of three years for accreditation, determined using the most recent documentation.
- Enabling manager-led onboarding for accreditation that remains valid at a group level, running parallel to the traditional accreditation agency path.
- Broadening the classification of deemed accredited investors to encompass all Persons Resident Outside India as defined by foreign exchange regulations.
Global Inclusion and Submission Deadlines
The proposed inclusion of non-resident individuals and overseas corporate bodies is designed to allow seamless investments without applying a minimum financial threshold. Accreditation mechanisms currently impact multiple segments, including alternative investment funds, specialised investment funds, portfolio management services, and angel funds. Stakeholders and interested parties can submit their feedback on the consultation paper until September 3, 2026.
Primary source: This independent news summary is based on official information from Securities and Exchange Board of India. Read the original document for complete details.