Regulator SEBI on Wednesday sought feedback on the proposal to introduce the concept of ‘accredited investors’ within the Indian securities market. The feedback might be despatched to the regulator in a prescribed format newest by March 18, it mentioned in a session paper.
SEBI famous that accredited buyers, additionally known as certified buyers or skilled buyers, are those that have an understanding of numerous monetary merchandise and the dangers and returns related to them. They are capable of take knowledgeable selections relating to their investments and are recognised by many securities and monetary market regulators globally.
The accredited investor concept might supply advantages to buyers and monetary product/service suppliers, comparable to flexibility in minimal funding quantity, flexibility and rest in regulatory necessities and entry to merchandise/ companies provided completely to accredited buyers.
SEBI mentioned the accreditation as soon as granted shall be legitimate for a yr. It additionally mentioned the accreditation could also be carried out through ‘Accreditation Agencies’ which could be the market infrastructure establishments or their subsidiaries.